International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Understanding Investor’s Behaviour Biases using a Few Important Theories

Author(s) Bishal Pal
Country India
Abstract According to the findings of several studies, the majority of the time, when faced with a complex decision, individuals tend to rely on their core preferences and judgements rather than answering in a completely rational manner. Despite the fact that this approach is both speedy and intuitively appealing, it could not result in the greatest possible outcomes. In contrast to the findings of this research group, conventional economic and financial theory often maintains that individuals behave rationally and take into consideration all of the information that is accessible to them when making decisions, which ultimately leads in the best possible outcomes and maximum market efficiency. Some people feel that it might stimulate sexual desire. In order to question these presumptions, behavioral finance incorporates research on the actual behavior of people and markets. Behavioral finance is a relatively new field. In this essay, we will investigate some of the core concepts behind behavioral biases as well as behavioral finance. Understanding these biases, being able to recognize them in both oneself and others, and gaining knowledge about how to eliminate or mitigate them can help investment professionals improve their financial performance.
Keywords Behavioural Finance, Biases, Personal Finance
Field Sociology > Banking / Finance
Published In Volume 5, Issue 4, July-August 2023
Published On 2023-08-27
Cite This Understanding Investor’s Behaviour Biases using a Few Important Theories - Bishal Pal - IJFMR Volume 5, Issue 4, July-August 2023. DOI 10.36948/ijfmr.2023.v05i04.5797
DOI https://doi.org/10.36948/ijfmr.2023.v05i04.5797
Short DOI https://doi.org/gsnrh3

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