Question

Please pick a behavioural bias and shortly giving an example

Answer 1

Behavioural bias are considered as blunders erroneous actions, resting on not fully rational decisions.

Behavioural biases are wrong and potentially damages behaviours caused by erroneous decisions. It often gives negative outcomes.

Like; A person is taking some wrong decision or irrational decision in any business issue while others are telling about negative outcome due to his wrong decision.

Any investor is gotten the jitters and pushed the ' sell' button at the first sign of a market downturn has acted on emotions. Often, the emotional response is due, atleast in part, to a behaviour bias.