Keeping feelings out of financial decision-making
Behavioural finance, or the study of investor psychology, marries the psychology of decision-making with investors’ trading behaviour and asset pricing. Departures from rational decision-making emerge because individuals do not enjoy unlimited information-processing capabilities and instead rely on rules of thumb when making decisions under uncertainty. This leads to systematic cognitive errors and mispriced assets. But […]
- September 23, 2010 September 13, 2019
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