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

  • Unique Paper ID: 160093
  • Volume: 9
  • Issue: 12
  • PageNo: 1152-1156
  • 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.

Copyright & License

Copyright © 2025 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{160093,
        author = {Sanket Chaudhary and Yugal Chauhan and Sumit Tikone and Sagar Uttekar},
        title = {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},
        journal = {International Journal of Innovative Research in Technology},
        year = {},
        volume = {9},
        number = {12},
        pages = {1152-1156},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=160093},
        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.},
        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.},
        month = {},
        }

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