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The behavioral assumption is one of the basics theories in classical finance. The assumption is that, under their resource constraints, human attempt to maximize their utilities, which means biggest profit and outcomes. The two most important characteristics of the human under the behavioral assumption are
rationality Rationality is the quality of being guided by or based on reasons. In this regard, a person acts rationally if they have a good reason for what they do or a belief is rational if it is based on strong evidence. This quality can apply to an ab ...
and
self-interest Self-interest generally refers to a focus on the needs or desires (''interests'') of one's self. Most times, actions that display self-interest are often performed without conscious knowing. A number of philosophical, psychological, and econo ...
.


References

Finance theories {{Finance-stub