THE INTERSECTIONS OF BEHAVIORAL BIASES AND FINANCIAL DECISION-MAKING IN PORTFOLIO MANAGEMENT: EVIDENCE FROM EXPERIMENTAL AND FIELD STUDIES
Abstract
This paper explores how behavioral biases influence financial decision-making within portfolio management, utilizing evidence from experimental and field studies. The study underscores the importance of understanding investor psychology in optimizing portfolio performance and mitigating biases like overconfidence, loss aversion, and herding. By synthesizing existing literature and presenting experimental insights, the study highlights practical strategies to counteract biases in financial decision-making.
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