Question
Behavioral Finance and Body of Knowledge: there are over 30 terms categorized into these areas: 1) cognitive biases, 2) emotional biases, 3) effects, 4) aversions
Behavioral Finance" and "Body of Knowledge": there are over 30 terms categorized into these areas:
1) cognitive biases,
2) emotional biases,
3) effects,
4) aversions and
5) other key terms.
Discuss one to three of the terms above.
For each term try to include a discussion about
1) how the problem becomes known or visible (manifestation),
2) why it can hurt investing or financial decisions,
3) solutions to minimize its impact.
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COGNITIVE BIAS A cognitive bias is a systematic pattern of deviating from rationality It causes us to be irrational in the way we search for evaluate ...Get Instant Access to Expert-Tailored Solutions
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