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    Ankita Priyadarsini
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    1. Behavioral finance discusses how psychological factors influence investor behavior and investment outcomes. Biases and heuristics can lead to suboptimal decisions. 2. The endowment effect and disposition effect are cognitive biases that influence investors' decisions to sell winning and losing investments. Investors are often reluctant to realize losses but hold onto gains. 3. Common biases include overconfidence, optimism, and focusing on recent experiences. Outcomes of decisions influenced by biases could be intermediate rather than optimal. Dealing with biases requires reflecting on perceptions and collecting diverse data points.

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    Behavioral finance notes

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    1. Behavioral finance discusses how psychological factors influence investor behavior and investment outcomes. Biases and heuristics can lead to suboptimal decisions. 2. The endowment effect and disposition effect are cognitive biases that influence investors' decisions to sell winning and losing investments. Investors are often reluctant to realize losses but hold onto gains. 3. Common biases include overconfidence, optimism, and focusing on recent experiences. Outcomes of decisions influenced by biases could be intermediate rather than optimal. Dealing with biases requires reflecting on perceptions and collecting diverse data points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    22 views5 pages

    Behavioral Finance Notes

    Uploaded by

    Ankita Priyadarsini
    1. Behavioral finance discusses how psychological factors influence investor behavior and investment outcomes. Biases and heuristics can lead to suboptimal decisions. 2. The endowment effect and disposition effect are cognitive biases that influence investors' decisions to sell winning and losing investments. Investors are often reluctant to realize losses but hold onto gains. 3. Common biases include overconfidence, optimism, and focusing on recent experiences. Outcomes of decisions influenced by biases could be intermediate rather than optimal. Dealing with biases requires reflecting on perceptions and collecting diverse data points.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 5

    BEHAV1ODRAL

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