Which of the following statements correctly identify significant differences between modern

portfolio theory $($MPT$)$ and behavior finance $($BF$)?$

MPT assumes all investors have perfect knowledge of investments while BF assumes

investors work with incomplete knowledge.

MPT assumes investors are averse to losses while $BF$ assumes investors are averse to risk.

MPT assumes investors price securities heuristically while BF assumes investors price

securities rationally.

MPT assumes new information is quickly priced into the market while BF assumes price

adjustments are not immediate and incomplete.

$1,2,3$ and $4.$

$2$ and $3.$

$1$ and $2.$

$1$ and $4.$