#analyst-notes #market-efficency
Loss Aversion
It is a theory that people value gains and losses differently and, as such, will base decisions on perceived losses rather than perceived gains. Thus, if a person were given two equal choices, one expressed in terms of possible losses and the other in possible gains, people would choose the former.
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Subject 4. Behavioral financelong-term historical phenomena in securities markets that contradict the efficient market hypothesis and cannot be captured plausibly in models based on perfect investor rationality. Behavioral finance attempts to fill the void.
<span>Loss Aversion
It is a theory that people value gains and losses differently and, as such, will base decisions on perceived losses rather than perceived gains. Thus, if a person were given two equal choices, one expressed in terms of possible losses and the other in possible gains, people would choose the former.
Overconfidence
Most people consider themselves to be better than average in most things they do. For example, 80% of drivers contend that they ar Summary
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