Question
I need the following: M3D2: Investor Behavior When it comes to money and investing, investors are not always as rational as we think they should
I need the following:
M3D2: Investor BehaviorWhen it comes to money and investing, investors are not always as rational as we think they should be. As such, there is a whole field of study that explains and analyzes investor behavior. In this modules discussion, you will focus on one type of investor behavior (herding) and how it impacts the market. Read the section Understanding Human Behavior Helps Us Understand Investor Behavior from your textbook (p. 279). Respond to the following:
Explain and describe the concept of herding and how this type of behavior is justified in the mind of the investor. Theories of behavioral finance can apply to other areas of human behavior in addition to investing. Share a situation in which you may have demonstrated one of these behaviors. Describe the events that occur in an efficient market in response to new information that cause the expected return to exceed the required return. What happens to the market in this situation?
Post your primary response. Read any postings already provided by your instructor or fellow students. See the SBT Discussion Rubric for how you will be evaluated for this activity.Remember to read the feedback to your own major postings and reply to it throughout the module. See the Course Calendar for due dates for posts and responses. Compose your work using a word processor and save it, as a Plain Text or an .rtf, to your computer. When you're ready to make your initial posting, please click on the Create Thread button and copy/paste the text from your document into the message field. Be sure to check your work and correct any spelling or grammatical errors before you post it. Evaluation Criteria Review the SBT Discussion Rubric located in the "Start Here" section of the course for more information on grading criteria.
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