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How behavioral finance adjusts the mpt theory

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Reference no: EM132595718

Copied portfolio" is a term used in west frequently where a seasoned investor offers other less expert investors to copy his portfolio and charge fee for it? So the investors opting for this service follow the investment choices made by that expert investor and reap benefits. Keeping this concept in view, do you think herding heuristic and "copy Portfolio" are same or not? Justify? What is the difference between Illusion of Control, over optimism and overconfidence heuristics? In tradition finance a simple advice of Henry Markowitz lies in a simple adage "Do not put all your eggs in one basket". How behavioral finance adjusts the MPT theory?

Reference no: EM132595718

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