How Behavioral Biases Influence Financial Decisions

How Behavioral Biases Influence Financial Decisions

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This session will provide names, definitions, and many examples of how behavioral biases negatively impact financial decisions.

Understanding these biases is the first step to overcoming them and improving performance, and for capitalizing on inefficiencies in the financial markets.

Biases explored include representativeness, availability, overconfidence, anchoring, and loss aversion. We will specifically show how biases influence expectations and forecasts, investment strategies, market prices, earnings revisions and surprises, etc. A comprehensive example of how biases impact an individual’s reluctance to sell losers will be explored, as well as suggestions to improve the decision-making process.

Click here to learn more about IE Business School’s Masters in Finance, and about their Executive Education Programs here.

To access additional IE/ Ivy Exec Resources from past presentations, click here.

Dr. Kevin Spellman
About the Author
Dr. Kevin Spellman

Dr. Kevin Spellman describes himself as a pracademic – he has professional and academic experiences. He is a Senior Lecturer and Director of the Investment Game at IE Business School and a Senior Lecturer and the Director of the Investment Management Certificate Program at the University of Wisconsin-Milwaukee. Students refer to him as “Coach,” as he coaches investment analysts.

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