Behavioral finance

Causality fallacy

It is time to recruit an assistant. Let’s assume you know a lot of potential candidates qualified for this job and that

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Cognitive Bias: The Monty hall Case

Congratulations! You have been invited to be on a famous TV game called Monty Hall. To win a beautiful car, you have

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Cognitive bias: Gambler’s Fallacy

You need to recruit a junior manager for your retail department.  You know that a lot of people are qualified for this

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Cognitive Bias: Familiarity Bias

Do you prefer to bet on the decrease of the Dow Jones or the CAC40 on the first of next September? These

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Cognitive Bias: Base Rate Fallacy

If a test to detect a disease whose prevalence is 1/1000 has a false positive rate of 5%, what is the chance

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Cognitive Bias: The framing effect

You are the head of an industrial company operating 600 plants with severe economic problems. After discussion with your strategic

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Behavioral finance, risk profiling and Prospect Theory

Prospect Theory is one of the most famous behavioral finance theory. It describes how investors make decision under risk. A short insight

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Cognitive Bias: Ambiguity aversion

As an investor, you have three investment options for the next semester: You get €500.000 for sure You invest in a stock

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