Type of valuation may be susceptible to psychological effect

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While almost all of the methods are listed above rely on some method of calculation, giving them the appearance of being based on quantitative criterial or analysis, some of the assumptions used in selecting both the method or type of valuation may be susceptible to psychological effects. Note two methods of valuation that are susceptible to social interaction effects- and explaining what the effects are and how they can be counteracted.

In 2017 we have a new President. Assess how the emotions of the overall financial community- and the individual investor, might be affected by either their highly positive, or highly negative, expectations of the actions of the President. Be specific how a prudent institutional investor would need to factor in both positive and negative emotions in their valuation of market conditions.

Reference no: EM131541413

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