Explain how human emotions influence people in investment

Assignment Help Finance Basics
Reference no: EM131131782

Theories of behavioral finance can apply to other areas of human behavior in addition to investing. Think of a situation in which you may have demonstrated one of these behaviors Share your situation whit a classmate.

Market anomalies are not always explained by the efficient market hypothesis. Behavioral finance has a number of theories to help explain how human emotions influence people in their investment decision-making processes.

Reference no: EM131131782

Questions Cloud

Major activity of operations in supporting company success : Which of the following is NOT a major activity of operations in supporting company success?
What is the set of hypotheses tha liam is testing : liam is evaluating the effects of the 1987 market decline on the volume of trading.specifically,he wants to test whether the decline affected trading volume.he selected a sample of 500 companies and collected data on the total annual volume for on..
Was fire department rejection of rachel application proper : Should Tiny Software have its employees sign non-compete agreements? Can Tiny Software require that current employees sign non-compete agreements, or will Tiny Software only be able to require that new employees sign non-compete agreements?
How should hr advise the ceo in the given situation : How should HR advise the CEO in this situation? From an HR perspective, which two factors do you consider to be most important, and why?
Explain how human emotions influence people in investment : Market anomalies are not always explained by the efficient market hypothesis. Behavioral finance has a number of theories to help explain how human emotions influence people in their investment decision-making processes.
What is the homoskedasticity : In regression (1), Y is regressed against X1 and X2. In regression (2), Y is regressed against X1, X2, X3, X4, and X5. Suppose the homoskadastic normal regression assumptions hold. What is the homoskedasticity-only F-statistic for testing H0:  β3 = β..
What is the location of the image : What is the location of the image?
Who is your favorite character in john miltons poem : Who is your favorite "character" in John Milton's poem? -  Why is this character your favorite? - Please write a detailed response and refer specifically to the text.
Present argument about population growth in china : Read this article about China's one-child policy.- Then present both sides of the argument about population growth in China by selecting 2 demographic theories.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd