ESSEN OF INVESTMENTS CONNECT AC
ESSEN OF INVESTMENTS CONNECT AC
11th Edition
ISBN: 9781266650314
Author: Bodie
Publisher: MCG
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Chapter 9, Problem 3PS
Summary Introduction

To determine:

Meaning of fundamental risk, why it permits behavioral biases to exist for long time period

Introduction:

Bias refers to the tendency of human to affect the perspective and behavior on the basis of predetermined beliefs and mental notions. Behavioral bias refers to the potentially damaging and wrong behaviors triggered by blunders, unfit reaction and erroneous decision. This generally leads to suboptimal, harmful/negative results unless some corrective action is taken.

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