Examlex
Duration is related to maturity in a linear manner through the interest rate of the asset.
Heuristics
Mental shortcuts that allow people to solve problems and make judgements quickly and efficiently.
Availability Heuristic
Availability heuristic is a mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.
Anchoring and Adjustment
A psychological heuristic where initial information serves as a reference point for subsequent judgments and decisions.
Satisficing
is a decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.
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