Questionnaire on behavioral finance
In the post-graduate group, the researcher did not coexist with the students during the whole course.
Behavioural finance pdf
Additionally, this study is further justified by the need to better understand how behavioral and personality variables can impact on risk decisions related to investments, contributing not only to behavioral finance theory, but also to economic analyses and formulation of public policies [ 13 ]. These results contribute to the understanding of the risk profile of investors, however, they treat the variables in an isolated way. Finally, moving away from the cognitive and behavioral aspects, this work also aims to evaluate if the questionnaires used by financial institutions are able to translate the real behavior of the economic agents. The results are analyzed using an ordered logistic regression model. This concern has proved to be relevant, since internationally it is already confirmed that the fact that the questionnaires do not incorporate the biases inherent in investment decision-making cannot reliably portray the real behavior of economic agents in the midst of their investments. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Realizing the relationship between personality and financial decisions, [ 6 ] incorporated into their study personality traits. However, as shown by [ 23 ], intelligence, or specific cognitive abilities, are important determinants of decision-making and should not therefore be ignored. There were some expressions of insecurity and uncertainty with relation to the projections carried out, and fear and considerable expectations regarding the results. The professor presented the purpose of the game, showing enthusiasm for the innovative experiment in the business administration course of this HEI. The interference of emotion is found both in perception and in the decision that involves risk. This ideal, self-interested, and perfectly rational agent maximizes his utility by choosing at each point in time the best options available.
Albaity and RahmanBooth and Nolenand Speelman, Clark-Murphy, and Gerrans present the relationship between gender and risk as being strong, since females showed less risk tolerance and therefore seek low-risk investment options. Zanalda indicates that the misfortunes of the global economy have caused a strong impact on stock exchanges and affected the life of millions of investors.
According to this concept, people suffer more pain from loss than the pleasure they reap from an equivalent gain. This is justified by the alteration that these personality traits can cause in the evaluation that each economic agent realizes of the conditions of uncertainty of the market [ 5 ].
The questionnaire comprised 5 blocks of questions.
Questionnaire on behavioral finance
The 16 students that remained were grouped by their affinity for fulfilling the work activities. The value is therefore attributed to gains and losses and not to the final assets position. What was sought with this operationalization of the experiment is to make the simulation real, using real profitability data. The didactic aim was to teach techniques and study scenarios to analyze behavior developed while evaluating investments. In the first, the researcher introduced herself to the group and explained the reason for her presence in the classroom to carry out the research. For Loewenstein, Volpp, and Asch , people interact with the perspective of risk in two ways: cognitively evaluating risks and reacting emotionally to them. Kuhn and Simon argue that rational decision-making procedures cannot be disassociated from the social practices they form part of, since they involve a broad diversity of criteria for evaluating and choosing alternatives and evolve in historical time based on evolutionary processes caused by the interaction between the decisions and their results. The questionnaire comprised 5 blocks of questions. The theoretical basis for the interference of emotion in perception is based on the priming effect and on risk as a sentiment, and suggests that positive emotion encourages the decider to positively evaluate a decision, envisaging less risk and higher return, while native emotion encourages the decider to negatively assess a decision, envisaging more risk and lower return Cardoso et al. Individuals would use mental shortcuts constructed during their socialization process and they would be subject to biases depending on the cognitive illusions constructed Kahneman and Tversky, ; Rogers, Securato, and Ribeiro, , in turn depending on these cognitive and emotional factors, which occur in a social context. Here the decision was also made to analyze the metaphors used by the students, which were provoked by the question: What is the metaphor that best describes you as an investor? The characteristic conscientiousness affected attitude to risk-taking.
Thus, for example, period 1 of the simulator corresponds to the percentage variation of the asset in the period from January to Juneyear 2 of the simulator corresponds to the percentage change from July to December In this paper we have operationalized intellect as a separate concept to openness to experience, which is one of the components of the Big Five.
Theories of the personality Economists are starting to consider aspects of the personality as relevant to economic studies.
Free behavioral finance questionnaire
During the course, the students that effectively participated were able to perceive the importance of studying investor behaviors, since in the search to understand the behaviors, the anomalies verified in the financial market that have a direct impact on the efficiency of that market can be monitored and reduced. The questionnaire on how to rationalize regarding their experience was developed by the team itself. Intelligence was also a determinant of preference for more risky options. For example, [ 8 ] evaluated personality traits and found that individuals who were more open to new experiences and extroverts tended to be more risk-prone. According to the authors, these factors mold individual behavior by endogenously determining both their preferences and the lenses through which individuals see the world in accordance with their perception, categorization, and interpretation of situations. The psychological atmosphere at the time of defining the operations was one of contained euphoria for most and of anxiety and uncertainty for some. This hypothesis has been questioned and was challenged by [ 4 ], who proposed an alternative theory that they called prospect theory. The work of Dal Ross et al. Regarding behavioral biases, [ 9 ] shows that behavioral biases such as overconfidence and myopia often checking their financial performance are good indicators for risk profile. Realizing the relationship between personality and financial decisions, [ 6 ] incorporated into their study personality traits. Albaity and Rahman , Booth and Nolen , and Speelman, Clark-Murphy, and Gerrans present the relationship between gender and risk as being strong, since females showed less risk tolerance and therefore seek low-risk investment options.
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