Investment class (behavioral bias) - Assignment Example

Only on StudentShare

Extract of sample
Investment class (behavioral bias)

In most of these studies, researchers have been critical in finding out whether the biases are intentional or unintentional and whether or not forecast bias take place to serve any good to forecasters and estimator. In the current paper, an existing model proposed by Knill, Minnick and Nejadmalayeri (2011, p 13) is examined with a new touch of behavioral bias to find out how behavioral bias such as overconfidence can be incorporated into the framework outlined by the researchers. Furthermore, the effects of experience and information asymmetry shall be analysed to find their impact on such forecast bias that take place. The existing model The existing model or framework proposed by Knill, Minnick and Nejadmalayeri (2011, p. 87) is one that can best be described as integrated as it makes use of a number of components and aspects of general forecasting such as public information and private assessment. The model also considers common and idiosyncratic components of earnings forecast where there is the use of previously disclosed information. ...
Download paper

Summary

BEHAVIORAL BIAS Introduction As much as possible, estimators and forecasters are expected to go about their duties in a manner that would guarantee and assure accuracy. This is because the more accurate forecasts are, the more professional and competent these estimators and forecasters are presumed to be (Loughran, 2004, p…
Author : elmo31

Related Essays

Investment analysis and Corporate Report Analysis: Sainsburys Supermarket Limited
12 pages (3012 words) Essay
nvestment Strategy Report For Investment Analysis Class
3 pages (753 words) Essay
Home Bias Puzzle
3 pages (753 words) Research Paper
Referee Report for investment class
5 pages (1255 words) Research Paper
behavioral finance
10 pages (2510 words) Assignment
management accounting-Bias Budgets
8 pages (2008 words) Coursework
Derivatives and Alternatives Investment Written Assignment Coursework
6 pages (1506 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!