NISM 21B Portfolio Managers Exam Notes

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  • Behavioral Finance: Studies psychological influences on decisions.
  • Standard Finance: Assumes rational, utility-maximizing investors.
  • Behavioral vs. Standard: Accounts for irrational biases.
  • Decision-Making: Influenced by emotions, cognitive errors.
  • Cognitive Biases: Errors in reasoning, e.g., overconfidence.

NISM 21B Portfolio Managers

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