13 Types of Biases in Finance

Published on Jan 23, 2018

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13 Types of Biases in Finance

A closer look at behavioral biases in investors
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The Rational Choice Theory

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The Rational Choice Theory

Contends that people tend to make rationally calculated choices.
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We really are irrational

Biases play an important role in our decision making process
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The Prospect Theory

Kahneman and Tversky developed the theory of irrational decision making.
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The Two Types of Biases

Biases are of two types mainly- cognitive and emotional
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Bias in Finance

Investors, too, suffer from biases when making investment decisions
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13 Types of Biases in Finance

To know what they are, read on: http://bit.ly/2Dy6KSh
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