What are the two generally accepted irrational behavior categories that behavioral finance observers?

1 answer:

3 0

Traders do no longer always method facts correctly and feature wrong probability distributions about destiny quotes of returns. traders make inconsistent or systematically suboptimal decisions.

A subset of suboptimal selection making can be characterized as you decide to pick out a low-probability but the high-payoff alternative (e.g., playing slot machines or shopping for lottery tickets) over an excessive-chance, low-payoff alternative (not gambling), such that the internet predicted to go back is much less than what one has.

The suboptimal method is below the most efficient (great possible) level or well-known. The words greatest and most appropriate each describe a super or best degree, diploma, result, or comparable issue. Suboptimal approach something has fallen quick to that degree. it's far often used in phrases like suboptimal overall performance and suboptimal conditions.

Learn more about suboptimal decisions here: brainly.com/question/25226643

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The poor working conditions in the office made Ellen dissatisfied with her job. When the office was renovated, she was less ____

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Poor working conditions at the office can be attributed to poor hygienic/safety conditions around the work environment or poor welfare conditions of the staffs working in an establishment. the result of such poor working conditions makes staff to be dissatisfied with their jobs and it will lead to under productivity of the company and the staffs.

but improvement in the working conditions like with the renovation of the Office will lead to Ellen been less dissatisfied.

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