A7 Flashcards
1
Q
Behavioral Analysis definition
A
accounts for how real people make decisions, and can derive incorrect probability distributions.
2
Q
2 categories of irrational decisions
A
- Investors do not always process information correctly
* Investors often make inconsistent/ suboptimal decisions due to their behavioral biases.
3
Q
Behavioral biases list
A
Framing: how question asked Mental Accounting: segregate decisions Regret avoidance Affect Prospect Theory
