Finance

Finance

Topic: Investment Decisions and Behavioral Finance

Behavioral finance explains at the extent to which the disposition effect permeates the investment landscape. Examples of loss aversion in equity markets, mutual fund management, and real estate are common trading investments which affects the decision power of the inventors. General financial literature is documented the losses with wrong and dislike manner. But there are various physiological minds with behavioral finance who interpreted the business activities differently.

There are two type of investors sophisticated and unsophisticated. Sophisticated Investors considered always the losses as good investors. This philosophy makes to be prepared for bearing the losses if ...