1. Behavioral Finance
... type of study incorporates the cognitive psychology, which refers to how people think. The field of behavioral finance has evolved in a way that it attempts to better understand and explain how sentiments and cognitive mistakes influence investors in the decision-making process. There are many aspects that cause investors to make errors while making an investment decision. Investors make judgments and form ... change their behavior, which may end up being irrational at times. Human heuristics is another concept present in the irrational judgment of investors. Heuristics is defined as "a...
- Word Count: 1028
- Approx Pages: 4
- Has Bibliography
- Grade Level: Undergraduate