Questions tagged [behavioral-finance]

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-2
votes
1answer
70 views

I want to know by an example how prices in stock market changes [closed]

Let us assume there is a listed company x. Currently it has 100 shares issued to trade in free float market. Current price of stock is let say 10. Now please let me know if I purchase one share of ...
1
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1answer
27 views

Question about ROIC

I was reading a book called "Pitch the Perfect Investment" and I reached a table of data I did not understand (attached below). Can anyone explain why cost of capital is not tallied for the ...
-4
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9answers
1k views

Can I become financially free without budgeting? [closed]

I just learned about what a budget is and how to make one, however, I simply do not see myself doing one or even like doing it.. I feel it is simply not exciting.
0
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0answers
33 views

Assumptions in Conventional Finance

These are the 3 main assumptions used in Conventional Finance: Price of assets are correct, ie equal to it's intrinsic value Resources are allocated effectively World is fair and so are the market (...
0
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1answer
89 views

Can volatility spike without stock market correcting

If US starts offering negative interest rate, is it possible that there is an increase in market volatility without the stock market correcting? In general can volatility spike without stock market ...
9
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4answers
932 views

Worried about wife's spending habits with impending lump sum

My wife of 18 years has a problem with money. She has stolen from banks using my identity, falsified documents to get cars, and has been to prison over it. I pay for everything and give her ...
1
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3answers
293 views

Dalbar: How can the average investor lose money?

Dalbar publishes the Quantitative Analysis of Investor Behavior (QAIB) annually. In it, several claims are made, the most common of which is that the average investor consistently under-performs the ...
1
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3answers
189 views

Why haven't there been personal finance apps or softwares that use regression modeling or A.I.?

Why is there no personal finance software that use back-data with A.I. or regression modeling to make suggestions or to build plans?
2
votes
1answer
184 views

What caused gold to lose a third of its value during the year 2013 to 2014? [closed]

I've noticed that the ounce of gold lost a third of its value starting at $1700 to $1200 during 2013 and I would like to understand what caused such thing, if possible.
0
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1answer
39 views

optimal OTM option

Lets say ABC is at 200. If I expect that ABC will be 180 by December, and I can only purchase 1 put option, what would be the most OPTIMAL put option to purchase? This is a question I've had - im ...
6
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3answers
819 views

Why does the stock market consistently overreact to the business cycle?

It's been shown time and time again (e.g. in Stocks for the Long Run) that the most profitable time to buy stocks is when sentiment is poor and that stocks usually recover very quickly at the end of a ...
3
votes
1answer
484 views

Are stock prices purely (or mostly) only based on human action?

Are stocks directly proportional to supply and demand? If they are, would this mean that stock prices completely depend on HOW the public FEELS/THINKS about the stock instead of what it is actually ...