Question
1. Please state the heuristics/biases that are responsible for the following examples and explain the heuristic/ bias shortly: a. Japanese investors put a whopping 80%
1.Please state the heuristics/biases that are responsible for the following examples and explain the heuristic/ bias shortly:
a.Japanese investors put a whopping 80% of their funds in Japan-listed companies, despite such names accounting for only 9% of world capitalization
b.Before tracking my stock investments on my computer, I jumped three times in the believing that the stock market will increase.
c.I have two stocks, stock A and B, with equal probabilities of positive and negative returns at equal rates. However, I know the probability distribution of only stock A. Even though the probabilities of returns are equal, I prefer to invest in stock A.
d.I'm considering to make a stock investment, and I pick stock A because Company A is a socially responsible company and I love that company in that sense.
I am offered to receive $100 today or $110 dollars 10 months from now, which refers to more than 10% return in 1 year. In this case, I prefer to receive $100
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