Questions tagged [behavioral-finance]

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2 answers

Could anyone help me how much my profit would be in 5 years if I start at $1000 and they said it would have a 5% income each year? [duplicate]

If I am to earn 5% annually and I started with $1000, how much would I have after 5 years? Is it too good to be true?
Christine Tibig Vickers's user avatar
33 votes
10 answers

Does the stock market fall faster than it rises?

I am under the impression that declines in the stock market are more sudden and violent than increases. Is there any truth to it? If so, what causes stock prices to fall faster than they rise? Or ...
Flux's user avatar
  • 17k
-2 votes
1 answer

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 ...
Jainav's user avatar
  • 11
1 vote
1 answer

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 ...
InvestingBeginner104's user avatar
0 votes
0 answers

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 (...
hitesh_a_h's user avatar
0 votes
1 answer

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 ...
Slartibartfast's user avatar
9 votes
4 answers

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 ...
user1049286's user avatar
1 vote
3 answers

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 ...
Kalev Maricq's user avatar
1 vote
3 answers

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?
user1276423's user avatar
2 votes
1 answer

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.
Akyo's user avatar
  • 37
0 votes
1 answer

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 ...
user3874530's user avatar
6 votes
3 answers

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 ...
dsimcha's user avatar
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3 votes
1 answer

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 ...
nopcorn's user avatar
  • 373