A BEHAVIORAL APPROACH IN INVESTMENT PROCESSES
Keywords:
behavioural finance, overconfidence, over and underreaction, risk aversion prospect theoryAbstract
It cannot be denied that behavioral finances changed
the way people think about investments. This paper aims to
present the psychological factors and the biases that affect the
capital investment decision. The expected result of the paper is
to present the concept of behavioral finance that helps us
recognize our natural biases which lead us into making illogical
and usually irrational decisions when it comes to investments
and finances. A full undestanding of what behavioral finance
means leads us closer to our own success.
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