Kibata

Sign In

Our Services

Get 15% Discount on your First Order

Order Now
[rank_math_breadcrumb]

Case Study 2: Identifying Behavioral Biases in Investment Decisions Objective: The goal of this activity is to help you identify different behavioral biases that influence decision-making in financial

Case Study 2: Identifying Behavioral Biases in Investment Decisions

Objective: The goal of this activity is to help you identify different behavioral biases that influence decision-making in financial markets. Work in a group to analyze the case assigned and identify the bias involved.

Assignment Instructions:

  1. Read the PowerPoints: Read Page 17 to 23 and understand various common behavioural biases.
  2. Identify the Bias:  Read the following cases and identify which behavioral bias is being demonstrated in each case.
  3. Evaluate the Impact: How does the identified bias affect the individual’s investment decisions? How might it lead to poor investment outcomes?

4.       Report: Your report should be concise, structured, and no longer than 4 pages. It must include:

·       An analysis of the biases demonstrated in each case.

·       A brief discussion on how these biases impact investment decisions and outcomes.

·       You may use the attached report template to structure your document.

Case 1: Sarah bought shares in a tech company that have since dropped 25% in value. Despite believing that the company has poor prospects, she refuses to sell the shares, hoping to recover her initial investment. She finds the thought of realizing a loss unbearable, even though selling now would allow her to invest in better opportunities.

Case 2: Mary is interested in buying a used car. She checks the first listing and sees a price of $25,000. After shopping around, she finds another car for $22,000, and despite its condition being worse, she feels that it’s a good deal simply because it is cheaper than the first car she saw.

Case 3: Tom, a professional trader, made a successful investment in renewable energy stocks. He attributes his success to his strong analytical skills. However, when another trade in tech stocks fails, he blames the market volatility, not his own judgment.

Case 4: Jack is a young investor who has been actively trading for two years. After making a few successful stock picks, he starts believing that his success is due to his superior stock-picking skills rather than market conditions. He disregards expert advice and begins trading larger sums of money, confident that he can outperform the market.

Case 5: Emma, a conservative investor, looks at each stock in her portfolio in isolation rather than considering how it fits into her overall investment strategy. As a result, she frequently trades in and out of individual stocks without considering the long-term impact on her overall portfolio performance.

Case 6: John works for a pharmaceutical company and invests a large portion of his retirement savings in the company’s stock because he is familiar with the business. He ignores broader investment opportunities and puts most of his portfolio in this single stock.

Case 7: Rachel has long believed that the automotive industry is doomed because of environmental concerns. Despite new evidence showing the industry’s successful pivot toward electric vehicles, she refuses to change her opinion and continues to avoid investing in automotive stocks.

Case 8: David is looking to invest in a startup. He is drawn to a company because its founder is a charismatic and well-spoken individual with a background in Silicon Valley. He assumes that, like other famous tech entrepreneurs, this founder will lead the company to success, even though the startup’s fundamentals are weak. The company has recently posted disappointing quarterly earnings, but David disregards this new information and still believes in the ability of the founder. 

Use of AI Tools

You are permitted to use AI tools to:

·       Enhance your understanding of financial concepts and terminology

·       Verify or cross-check facts and definitions.

However, AI must NOT be used to:

·       Generate the final written report or responses.

·       Copy AI-generated content directly into the submission.

·       Use AI to bypass personal analysis, critical thinking, or the required research process.

Academic Integrity Reminder:All work submitted must be your own. Misuse of AI, including AI-generated plagiarism, will be subject to academic integrity policies. Proper citations must be provided for any external sources used.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Order Now

Related Questions

Discussion Replies: Selecting and Interpreting Inferential Statistics The student must then post 1 reply to another student’s post. The reply must summarize the student’s findings and indicate areas o

Discussion Replies: Selecting and Interpreting Inferential Statistics The student must then post 1 reply to another student’s post. The reply must summarize thestudent’s findings and indicate areas of agreement, disagreement, and improvement. It must besupported with scholarly citations in the latest APA format and corresponding list of references.The minimum word

In the thread for each short-answer discussion the student will post short answers to the prompted questions. The answers must demonstrate course-related knowledge and support their assertions with sc

 In the thread for each short-answer discussion thestudent will post short answers to the prompted questions. The answers must demonstratecourse-related knowledge and support their assertions with scholarly citations in the latest APAformat. Minimum word count for all short answers cumulatively is 200 words.For each thread thestudent must include a title

QUANTITATIVE ANALYSIS: CROSS TABULATION, CHI SQUARE, AND NON- PARAMETRIC ASSOCIATION SPSS Questions Chapter 7 Using the CollegeStudentData.sav file, do the following problems. Print your outputs after

QUANTITATIVE ANALYSIS: CROSS TABULATION, CHI SQUARE, AND NON-PARAMETRIC ASSOCIATIONSPSS QuestionsChapter 7Using the CollegeStudentData.sav file, do the following problems. Print your outputs aftertyping your interpretations on them. Please circle the key parts of the output that you discuss.7.1 Run crosstabs and interpret the results of chi-square and phi (or Cramer’s V),

Create a 9–10-slide PowerPoint presentation and conduct a 5–10-video recording of the delivery of the presentation, synthesizing information to make decisions that are focused on the development and j

Create a 9–10-slide PowerPoint presentation and conduct a 5–10-video recording of the delivery of the presentation, synthesizing information to make decisions that are focused on the development and justification of recommendations of evidence-based strategies on Allina Healthcare System . Collapse AllIntroduction This portfolio work project is the final piece of

Reply: The student must then post 1 reply to another student’s post. The reply must summarize thestudent’s findings and indicate areas of agreement, disagreement, and improvement. It must besupported

Reply: The student must then post 1 reply to another student’s post. The reply must summarize thestudent’s findings and indicate areas of agreement, disagreement, and improvement. It must besupported with scholarly citations in the latest APA format and corresponding list of references.The minimum word count for Integrating Faith and Learning

SPSS Questions Chapter 6 Using the ChapterSixData.sav file, do the following problems. Print your outputs after typing your interpretation on them. Please circle the key parts of the output that you d

SPSS Questions Chapter 6 Using the ChapterSixData.sav file, do the following problems. Print your outputs after typing your interpretation on them. Please circle the key parts of the output that you d SPSS QuestionsChapter 6Using the ChapterSixData.sav file, do the following problems. Print your outputs after typingyour interpretation on them.

QUANTITATIVE ANALYSIS: DESCRIPTIVE STATISTICS, ORDINAL SCALE AND DICHOTOMOUS VARIABLE ASSIGNMENT SPSS Problems Chapter 4 Using the CollegeStudentData.sav file (see Appendix A), do the following proble

QUANTITATIVE ANALYSIS: DESCRIPTIVE STATISTICS, ORDINAL SCALE AND DICHOTOMOUS VARIABLE ASSIGNMENT SPSS Problems Chapter 4 Using the CollegeStudentData.sav file (see Appendix A), do the following proble QUANTITATIVE ANALYSIS: DESCRIPTIVE STATISTICS, ORDINAL SCALE ANDDICHOTOMOUS VARIABLE ASSIGNMENTSPSS ProblemsChapter 4Using the CollegeStudentData.sav file (see Appendix A), do the following problems. Print youroutputs and circle

SPSS Questions Chapter 6 Using the ChapterSixData.sav file, do the following problems. Print your outputs after typing your interpretation on them. Please circle the key parts of the output that you d

SPSS QuestionsChapter 6Using the ChapterSixData.sav file, do the following problems. Print your outputs after typingyour interpretation on them. Please circle the key parts of the output that you discuss. Use theinformation in the appropriate “Output Interpretation” and “How to Write” sections.6.1 Compute Cohen’s kappa to assess reliability using Rater 1

Discussion Thread: Selecting and Interpreting Inferential Statistics Respond to the following short answer questions from Chapter 5 of the Morgan, Leech, Gloeckner, & Barrett textbook: D4.5.1 Comp

Discussion Thread: Selecting and Interpreting Inferential Statistics Respond to the following short answer questions from Chapter 5 of the Morgan, Leech, Gloeckner, & Barrett textbook: D4.5.1 Compare and contrast a between-groups design and a within-subjects design. D4.5.2. What information about variables, levels, and design should you keep in mind in

Module 2 – CaseHypothesis Testing: t-Tests & ANOVAsAssignment Overview Hypothesis Tests & ANOVA **Complete Module 2 SLP before Module 2 Case** One-Way ANOVA (Analysis of Variance) tests if the

Module 2 – CaseHypothesis Testing: t-Tests & ANOVAsAssignment Overview Hypothesis Tests & ANOVA **Complete Module 2 SLP before Module 2 Case** One-Way ANOVA (Analysis of Variance) tests if there are statistical differences between the means of three or more independent groups. Case 2 Resources Analysis of Variance (ANOVA)Single factor ANOVA

Module 2 – SLPHypothesis Testing: t-Tests & ANOVAsAssignment Overview Two Sample Hypothesis Tests **Complete Module 2 SLP before Module 2 Case** Comparing two samples provides insights. Are emplo

Module 2 – SLPHypothesis Testing: t-Tests & ANOVAsAssignment Overview Two Sample Hypothesis Tests **Complete Module 2 SLP before Module 2 Case**Comparing two samples provides insights. Are employees with an MBA more productive than those without? If our results support the contention, then hiring more MBAs would be good for business.

QUANTITATIVE ANALYSIS: DESCRIPTIVE STATISTICS, ORDINAL SCALE AND DICHOTOMOUS VARIABLE ASSIGNMENT SPSS Problems Chapter 4 Using the CollegeStudentData.sav file (see Appendix A), do the following proble

QUANTITATIVE ANALYSIS: DESCRIPTIVE STATISTICS, ORDINAL SCALE ANDDICHOTOMOUS VARIABLE ASSIGNMENTSPSS ProblemsChapter 4Using the CollegeStudentData.sav file (see Appendix A), do the following problems. Print youroutputs and circle the key parts of the output that you discuss.4.1.For the variables with five or more ordered levels, compute the skewness. Describe theresults. Which variables in

The student must then post 1 reply to another student’s post. The reply must summarize the student’s findings and indicate areas of agreement, disagreement, and improvement. It must be supported with

The student must then post 1 reply to another student’s post. The reply must summarize thestudent’s findings and indicate areas of agreement, disagreement, and improvement. It must besupported with scholarly citations in the latest APA format and corresponding list of references.The minimum word count for Integrating Faith and Learning discussion

DISCUSSION ASSIGNMENT INSTRUCTIONS The student will complete 8 short-answer discussions in this course and 1 long-answer Integrating Faith and Learning discussion. In the thread for each short-answer

DISCUSSION ASSIGNMENT INSTRUCTIONSThe student will complete 8 short-answer discussions in this course and 1 long-answerIntegrating Faith and Learning discussion. In the thread for each short-answer discussion thestudent will post short answers to the prompted questions. The answers must demonstratecourse-related knowledge and support their assertions with scholarly citations in the latest

BUSINESS ANALYSIS REPORT Introduction After completing the business simulation at a competent level (a score above 0.000 for the cumulative total performance at the end of Q6), you will create a writt

BUSINESS ANALYSIS REPORT Introduction After completing the business simulation at a competent level (a score above 0.000 for the cumulative total performance at the end of Q6), you will create a written report, using the attached “Business Analysis Template,” for stockholders and the board of directors to review. Analyze the

SPSS Problems Chapter 4 Using the CollegeStudentData.sav file (see Appendix A), do the following problems. Print your outputs and circle the key parts of the output that you discuss. 4.1.For the varia

SPSS ProblemsChapter 4Using the CollegeStudentData.sav file (see Appendix A), do the following problems. Print youroutputs and circle the key parts of the output that you discuss.4.1.For the variables with five or more ordered levels, compute the skewness. Describe theresults. Which variables in the dataset are approximately normally distributed/scale? Whichones are

Please follow the Instructions and NO plagiarism! All submissions should have a title page and reference page (not included in page count).Narrative component submitted in a Word document, which may i

Please follow the Instructions and NO plagiarism! All submissions should have a title page and reference page (not included in page count). Narrative component submitted in a Word document, which may include tables, graphs, and other resources as needed. Include an introductory and summary paragraph/statement. The page count should be