In general, behavioral biases come in two forms: cognitive errors and emotional biases. Both forms of bias, regardless of their source, may cause decisions to deviate from what is assumed by traditional finance theory. What is the main difference between both types of biases?

• a) Cognitive errors are behavioral biases resulting from faulty reasoning, and they can be corrected through better information, education, and advice. Emotional biases are behavioral biases resulting from reasoning influenced by feelings, and they can difficult to correct, so we must recognize them, and adapt to them.

• b) Cognitive errors are behavioral biases resulting from faulty reasoning, and they can difficult to correct, so we must recognize them, and adapt to them. Emotional biases are behavioral biases resulting from reasoning influenced by feelings, and they can be corrected through better information, education, and advice.

• c) Emotional biases are behavioral biases resulting from faulty reasoning, and they can be corrected through better information, education, and advice. Cognitive errors are behavioral biases resulting from reasoning influenced by feelings, and they can difficult to correct, so we must recognize them, and adapt to them.