In the Preface to his book, The Psychology of Investing, John Nofsinger states that the human mind is so sophisticated and human emotions are so complex that the emotions of fear and greed do not adequately describe the psychology that affects people as they make investment decisions.

Suppose that you work as a private client advisor in a wealth management firm. Your supervisor has asked you to write a report on how research in behavioural finance can be applied to your role. Select any two (2) applications of behavioural finance that you believe are particularly significant and evaluate how they be applied to your investment advisory role.