Which of the Following Human Emotions Tend to Affect Investment

question 10

Multiple Choice

Which of the following human emotions tend to affect investment decisions?
1) the pain of regret
2) following the crowd or "herding"
3) selective memory

• A) 1 and 2
• B) 1 and 3
• C) 2 and 3
• D) all of these choices

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Definitions:

Existing Schema

Describes the pre-existing cognitive framework or set of ideas that individuals use to organize and interpret information.

New Experiences

Encounters or situations that are novel or different from one's previous life events, contributing to personal growth.

Law of Effect

A principle in psychology proposed by Edward Thorndike that suggests behaviors followed by positive outcomes are more likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Behaviors

Actions or reactions of an individual or system in response to external or internal stimuli.