Behavioral Biases Lead Investors to Make Costly Financial Decisions
Investors often make decisions based on their emotions rather than facts. A study looked at how common biases, like overconfidence and optimism, affect investor choices. They surveyed 300 investors from banks and stock exchanges. The results showed that these biases have a moderate impact on decision-making. So, even though comforting investments may seem safe, they might not always be the most profitable choice.