Behavioral Finance Notes

IOP3708 Assessment 1 SEMESTER 1 2025 Question 1 Not answered Marked out of 1.00 Flag question Question text Why do people tend to sell stocks that have performed well too soon while holding on to poorly performing stocks too long? Because_. a. of Loss-aversion that result from fear of regret b. emotions may not provide a better explanation. c. investors are risk-neutral for losers. d. of a decrease in capital gains to be paid. Question 2 Not answered Marked out of 1.00 Flag q...

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 Momentum is the anomaly that gives those subscribing to efficient markets the most trouble. Critically explain this statement. Behavioural finance has gained more recognition in recent years as it has been discovered that traditional finance theory does not fully explain market crashes and other anomalies. This field of finance combines psychology and sociology to gain a better understanding of investor behaviour, which may provide a more comprehensive...

IOP3708 ASSIGNMENT 2 SEMESTER 1 2025

IOP3708 ASSIGNMENT 4 SEMESTER 1 2024 Explain the Triunity theory of the market, referring to mood, mind body dynamics in terms of the human brain, how it is expressed, market focus, research metrics, and associated behavioural practices The application of behavioural finance principles in financial advisory is becoming more prevalent, leading to significant changes in the field. The financial crisis of 2008 accelerated this trend, resulting in the emergence of new client priorities. Please...

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 ELITE 1.1. Momentum is the anomaly that gives those subscribing to efficient markets the most trouble. Critically explain this statement. (5 marks)

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 BMZ The field of finance has traditionally rested on the assumptions of rational decision-making, efficient information dissemination, and logical price adjustments. However, real-world financial markets often deviate from these ideals, as evidenced by market bubbles, crashes, and persistent anomalies such as momentum and herding. These inconsistencies have sparked increasing academic and professional interest in behavioural finance a discipline that integ...

IOP3708 Assessment 3_ SEMESTER 1 2024 Psychologist believe that emotions can develop completely independently from cognition. Which of the statements is incorrect? Switching between strategies in style rotation requires a decision rule. Which of the following is not a proper presentation of the decision rule? Knowledge that cannot be verbalized can best be described as Which of the following is not true about the element of risk?

IOP3708 Assessment 1 SEMESTER 1 2025 Question 1 Not answered Marked out of 1.00 Flag question Question text Why do people tend to sell stocks that have performed well too soon while holding on to poorly performing stocks too long? Because_. a. of Loss-aversion that result from fear of regret b. emotions may not provide a better explanation. c. investors are risk-neutral for losers. d. of a decrease in capital gains to be paid. Question 2 Not answered Marked out of 1.00 Flag q...

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 BMZ The field of finance has traditionally rested on the assumptions of rational decision-making, efficient information dissemination, and logical price adjustments. However, real-world financial markets often deviate from these ideals, as evidenced by market bubbles, crashes, and persistent anomalies such as momentum and herding. These inconsistencies have sparked increasing academic and professional interest in behavioural finance a discipline that integ...

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 Momentum is the anomaly that gives those subscribing to efficient markets the most trouble. Critically explain this statement. Behavioural finance has gained more recognition in recent years as it has been discovered that traditional finance theory does not fully explain market crashes and other anomalies. This field of finance combines psychology and sociology to gain a better understanding of investor behaviour, which may provide a more comprehensive...

IOP3708 ASSIGNMENT 3 SEMESTER 1 2025 ELITE 1.1. Momentum is the anomaly that gives those subscribing to efficient markets the most trouble. Critically explain this statement. (5 marks)

IOP3708 ASSIGNMENT 2 SEMESTER 1 2025

IOP3708 ASSIGNMENT 4 SEMESTER 1 2024 Explain the Triunity theory of the market, referring to mood, mind body dynamics in terms of the human brain, how it is expressed, market focus, research metrics, and associated behavioural practices The application of behavioural finance principles in financial advisory is becoming more prevalent, leading to significant changes in the field. The financial crisis of 2008 accelerated this trend, resulting in the emergence of new client priorities. Please...

IOP3708 Assessment 3_ SEMESTER 1 2024 Psychologist believe that emotions can develop completely independently from cognition. Which of the statements is incorrect? Switching between strategies in style rotation requires a decision rule. Which of the following is not a proper presentation of the decision rule? Knowledge that cannot be verbalized can best be described as Which of the following is not true about the element of risk?