Students enrolled in various economics and finance courses are expected to be well versed in various aspects of managing finances. Universities make the best attempts to make their students learn about the various aspects of finances.
They find assigning huge home works the most convenient way of ensuring this. Little do they realize that the expanse of research these assignments require is hard to keep up with the short deadlines they provide! Students often get overburdened in attempts to make both ends meet. Resorting to a resource providing financial markets assignment help is a great idea in such a scenario.
In this write-up, we discuss some of the concepts related to the financial market!
Behavioural Finance
It is the study of the various aspects of the psychology of the investors and how their decisions affect the financial market.
While according to the traditional financial theory, the investors and the market is assumed to be entirely rational and no emotional influence plays a role in the market's ups and downs. However, according to the behavioural finance theory, investors are considered to be influenced by various reasons and have their own biases and error-prone decision-making.
Being overconfident of one's knowledge, heuristic simplification of a bigger question, being emotional while taking decisions, and the tendency to get influences by others, are the main aspects dealt with in behavioral finances.
1. Control And Overconfidence:
Overestimating one’s capabilities while underestimating others.
2. Confirmation Bias:
A tendency to seek approval for our beliefs or paying attention to information that supports our beliefs.
3. Self-Attribution:
Being self-appreciative of having earned profits while believing that the losses have occurred by chance.
4. Hindsight Bias:
Believing to have a special ability to predict the market outcome.
5. Representativeness Bias:
A tendency to believe that two events are more correlated than they are.
6. The Narrative Fallacy:
Our tendency to believe in well-narrated stories, overlooking the facts and thinking rationally about the information.
7. Framing Bias:
People tend to believe their favorite version of the story, overlooking the raw facts.
8. Loss Aversion:
Tendency to make decisions under the fear of avoiding losses. They pay lesser attention to making gains.
9. Anchoring Bias:
Investors tend to believe more in the information they have heard first, than the ones they come across later.
10. Herd Mentality:
Investors tend to get influenced by the investing pattern of the market bulls.
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What Is Microfinance?
Financial services catering to the lower income group of people as well as small businesses, which do not operate according to the normal banking norms, are known as microfinance. Students often find it difficult to understand the concepts of behavioral microfinance. Hiring a professional expert for getting one’s assignment done comes very handy, in case a student finds difficulty in finishing on his own.
Understanding the concepts of micro-financing is crucial to building up the base for further learning about the financial markets. However, when students are burdened with numerous home works, they seem to be less receptive to so much new knowledge and end up either missing the deadlines or compromising on the quality of the assignment.
Hiring an expert from a financial markets assignment help providing agency seems to be a good option for students finding it difficult to cope up with the stress. My Assignment Services is one such company offering affordable assignment help to students and is a customer favorite for their great assignment content and timely delivery of the work.
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