Investigating the Impact of Behavioral Biases on Investment Decision-Making A Comparison between Behavioral Finance and Traditional Finance Perspectives write about overview of behavioral finance
Author(s):
Sanket Chaudhary, Yugal Chauhan, Sumit Tikone, Sagar Uttekar
Keywords:
behavioral biases, investment decision-making, behavioral finance, traditional finance, loss aversion, overconfidence, herding behavior, risk-adjusted returns, diversification, market timing, investor perspectives, practical implications.
Abstract
This study compares behavioral finance with traditional finance viewpoints on behavioral biases and investment decision-making. Traditional finance emphasizes rational market-based decision-making, while behavioral finance examines how psychological biases affect investment behavior. The study examines how loss aversion, overconfidence, and herding behavior affect investing decisions from both sides. A thorough literature study illuminates behavioral and traditional finance ideas and findings. Quantitative analysis of historical financial data investigates biases and investment performance, including risk-adjusted returns, diversification, and market timing. Qualitative interviews or surveys obtain investor opinions on risk and decision-making. The comparative analysis shows how biases affect investment decision-making from the two perspectives. Common biases, their effects on investing performance, and behavioral finance vs. standard finance tactics are predicted results. Investors, financial advisors, and regulators can enhance decision-making using the findings. This study adds to behavioral finance and traditional finance literature by revealing how biases affect investment outcomes.
Article Details
Unique Paper ID: 160093

Publication Volume & Issue: Volume 9, Issue 12

Page(s): 1152 - 1156
Article Preview & Download


Share This Article

Join our RMS



Conference Alert

NCSEM 2024

National Conference on Sustainable Engineering and Management - 2024

Last Date: 15th March 2024

Latest Publication

Call For Paper

Volume 11 Issue 1

Last Date for paper submitting for Latest Issue is 25 June 2024

About Us

IJIRT.org enables door in research by providing high quality research articles in open access market.

Send us any query related to your research on editor@ijirt.org

Social Media

Google Verified Reviews

Contact Details

Telephone:6351679790
Email: editor@ijirt.org
Website: ijirt.org

Policies

Important Links

Browse Rsearch papers