About this document
Understanding Representative Bias in Finance by Sreedevi P Menon is a document available to read on EtoBox.
Behavioral finance is the study of how psychology affects investing decisions. Traditional finance assumes investors are perfectly rational, but behavioral finance recognizes that investors are influenced by cognitive biases and emotional factors. Some common biases include loss aversion, where investors avoid realizing losses; overconfidence, where investors overestimate their abilities; and status quo bias, where investors prefer maintaining the current situation rather than making changes. Understanding
- Author
- Sreedevi P Menon
- Language
- EN