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A research study on investors behaviour regarding choice of asset allocation of teaching staff

International Journal on Integrated Education (IJIE)

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Title A research study on investors behaviour regarding choice of asset allocation of teaching staff
Creator Gobinda Dhamala
Khushboo Sharma
Dimple Patel
Kunal Jaiswal
Subject Behavioural Finance
Assets Allocation
Investment Alternatives
Description Every rational economic decision maker would prefer to avoid a loss, to have benefits be greater than costs, to reduce risk, and to have investments gain value. Loss aversion refers to the tendency to loathe realizing a loss to the extent that you avoid it even when it is the better choice. How can it be rational for a loss to be the better choice? Say you buy stock for $100 per share. Six months later, the stock price has fallen to $63 per share. You decide not to sell the stock to avoid realizing the loss. If there is another stock with better earnings potential, however, your decision creates an opportunity cost. You pass up the better chance to increase value in the hopes that your original value will be regained. Your opportunity cost likely will be greater than the benefit of holding your stock, but you will do anything to avoid that loss. Loss aversion is an instance where a rational aversion leads you to underestimate a real cost, leading you to choose the lesser alternative. Aim of this paper is to identify the various factors which are affecting to the investment decision and behavioural finance.
Publisher Research Parks Publishing LLC
Date 2020-02-26
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Source International Journal on Integrated Education; Vol. 3 No. 2 (2020): IJIE; 68-77
Language eng
Rights Copyright (c) 2020 International Journal on Integrated Education