behavioral-finance-how-emotions-influence-investment-decisions
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DATE 08 Dec 2025
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notes
About This Document
Document Type: This is a Exam Paper, designed for Testing knowledge and exam technique.
Context: Standard material from the 2025 academic period.
Key Content: Likely covers essential definitions, theoretical concepts necessary for mastery of the subject.
Study Strategy: Attempt these questions under timed conditions to simulate a real exam environment, then check against your notes.
Recommendation: comprehensive resource for students aiming to achieve top grades in their final assessments.
Detailed Content Overview
Introduction
This notes resource titled "behavioral-finance-how-emotions-influence-investment-decisions" provides comprehensive exam preparation materials designed to test and enhance your understanding. This resource is structured to facilitate effective learning and retention of important information.
Key Topics Covered
Learning Objectives
- Master key concepts required for examination success
- Practice answering exam-style questions effectively
- Develop time management skills for timed assessments
- Identify and address knowledge gaps in understanding
Detailed Summary
IPE Journal of Management ISSN 2249-9040 Volume 15, No 1, Jan-June 2025 pp: 155-162 Behavioral Finance: How Emotions Influence Investment Decisions Dr. Kaushik1 Abstract Behavioral finance explores the psychological factors and emotional biases that influence investment decisions, challenging the traditional assumption of rationality in financial markets. This study delves into how emotions such as fear, greed, overconfidence, and regret significantly impact investor behavior, often leading to irrational decisionmaking. Cognitive biases like loss aversion, confirmation bias, and anchoring are examined to understand their role in shaping investment patterns and market anomalies. The interplay between emotions and cognitive biases often leads investors to deviate from optimal strategies, causing inefficiencies in financial markets. This research highlights the importance of recognizing and mitigating these biases to enhance decision-making in personal and corporate investing. By integrating insights from psychology and finance, behavioral finance provides a framework for understanding the complexities of investor behavior, ultimately contributing to better financial education and awareness.
Study Tips & Recommendations
Time Management
Practice under timed conditions to improve speed and accuracy. Allocate specific time limits to each section.
Active Practice
Attempt all questions before checking answers. Review mistakes to understand where improvements are needed.
Mark Scheme Review
Study marking schemes carefully to understand how examiners award points and structure your answers accordingly.
Regular Review
Schedule periodic reviews to reinforce learning and combat forgetting. Use spaced repetition for optimal retention.
Content Preview
IPE Journal of Management ISSN 2249-9040 Volume 15, No 1, Jan-June 2025 pp: 155-162 Behavioral Finance: How Emotions Influence Investment Decisions Dr. Puja U. Kaushik1 Abstract Behavioral finance explores the psychological factors and emotional biases that influence investment decisions, challenging the traditional assumption of rationality in financial markets. This study delves into how emotions such as fear, greed, overconfidence, and regret significantly impact investor behavior, often lead...
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