Loss Aversion is a behavioral bias. For an investor, if loss aversion is more important than risk aversion (risk aversion implies that although investors dislike risk they are willing to assume risk), researchers allow for the possibility of investor overreaction (evidence also suggest for the under reaction). Behavioral finance attempts to explain why individuals make the decisions that they do (whether rational or irrational).
0 Comments
Leave a Reply. |
Archives
June 2019
Categories |