SlideShare a Scribd company logo
Group Members:
Zaiena Naeem (GR) (5075)
Muhammad Talha (CR) (5150)
Noor Zafar (5011)
Hafiz Muhammad Ahmad Anees (5091)
Muhammad Usman Ghani (5122)
Submitted to: Dr. Zeeshan Anwar
BBA 5th
Semester
Evening Section A
University of Okara
7th
December, 2022
Title No. 1:
 Effect of Cognitive Biases on Investment Decision
Making: A Case in Okara, Pakistan.
Justification:
As human beings, we all have cognitive biases. A cognitive bias is an error in
thinking that occurs when we are processing and interpreting information in the
world around us. It affects the decisions and judgments we make. Oftentimes, they
are a result of the brain’s attempt to simplify information processing. Our brain
creates rules of thumb to help us make sense of the world and reach decisions with
relative speed. Unfortunately, the process of speeding up the decision process can
sometimes lead to errors. When it comes to investing, cognitive biases can make
our investing behavior irrational. This can lead us to make undesirable financial or
investment choices because we draw incorrect conclusions based on some of the
thinking errors our brain is making to arrive at those decisions. To be a successful
investor over the long term, we need to understand, and hopefully overcome, some
common cognitive biases (Confirmation bias occurs when you only seek out
information that tells you what you want to hear, Anchoring bias causes us to rely
too heavily on the first piece of information we are given about a topic, Loss
aversion can also lead to unnecessary risk avoidance, Overconfidence bias is the
tendency for a person to overestimate their abilities). Doing so can lead to better
decision making, which may help lower risk and improve investment returns over
time.
Effect of Cognitive Biases on Investment Decision
Making: A Case in Okara, Pakistan.
Authors: Zaiena Naeem, Noor Zafar, M Talha, Hafiz Muhammad Ahmad Anees, M Usman
Ghani.
Abstract:Background: Behavioral finance deals with the study of psychological
influences on investors and financial markets. Investors commonly perform
investment analysis through fundamental and technical analysis. The behavior of
the investment market originates from the principles of psychological decision
making that explains the reasons behind buying and selling stocks.
Objectives: This paper aims to examine the effect of cognitive biases on
investment decisions in Okara Pakistan. The effect of five cognitive biases, such as
availability, anchoring, overconfidence, herd instinct, and regret aversion, is
measured on rational investment decision-making.
Methods: This study is based on primary data sources using non-probability
(convenience method) sampling techniques. There are seven brokerage houses in
Okara, and researchers selected 179 respondents involved in stock market
investment. Both descriptive and inferential analyses were made to analyze the
data.
Results: The study discovers a link between irrationality in financial decision
making and availability, overconfidence, and herd instinct biases, but anchoring
and regret aversion biases had no effect on irrational investment decisions.
However, though all the biases have a positive relationship with an irrational
investment decision, overconfidence bias has the highest impact. Regret aversion
bias has the least impact on investment decisions in comparison to the other four
biases.
Conclusion: The investors and the policymakers should focus on finding the
cognitive biases and various de-biasing methods to eradicate those biases
throughout investment decision-making. The findings of this study have a number
of implications for investors, brokers, and governments who aim to stimulate stock
market investment.
Keywords: Behavioral finance, cognitive biases, financial markets, investment
decisions
 Dhungana, B. R., Bhandari, S., Ojha, D., & Sharma, L. K. (2022). Effect of Cognitive Biases on
Investment Decision Making: A Case of Pokhara Valley, Nepal. Quest Journal of Management
and Social Sciences, 4(1), 71-84.

The paper examines the direct and indirect effects (via investors’ risk perception) of heuristic biases on
investors’ irrational behavior in decision-making. The study also investigates the moderating effect of
investors’ extraversion on both the direct and the indirect associations between heuristic biases and
irrational decision-making. Based on survey data collected from 247 investors registered in various
brokerage houses in Pakistan and the analyses (mediation and moderation) performed using the Process
Macro technique (proposed by Hayes, 2017) in SPSS, the results of this study reveal that heuristic biases
positively affect investors’ irrational decision-making both directly and indirectly via risk perception. The
results reveal that extraversion moderates both direct and indirect associations between heuristic biases
and investors’ irrational behavior in decision-making. Our findings carry useful practical implications for
organizations’ policymakers

More Related Content

Similar to FINAL TOPIC FOR ARTICLE.docx

Impact of Financial Knowledge of Investors Investment Making Decisions
Impact of Financial Knowledge of Investors Investment Making DecisionsImpact of Financial Knowledge of Investors Investment Making Decisions
Impact of Financial Knowledge of Investors Investment Making Decisions
ijtsrd
 
behavioral biases and investment decisions
behavioral biases and  investment decisionsbehavioral biases and  investment decisions
behavioral biases and investment decisions
محمدفيصل بشير
 
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
Raquel Pellicier
 
Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
	Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...	Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
inventionjournals
 
The cost of irrationality - how poker players perform better by avoiding cogn...
The cost of irrationality - how poker players perform better by avoiding cogn...The cost of irrationality - how poker players perform better by avoiding cogn...
The cost of irrationality - how poker players perform better by avoiding cogn...
Lasse Ringstad
 
The investor indonesia behavior on stock investment decision
The investor indonesia behavior on stock investment decisionThe investor indonesia behavior on stock investment decision
The investor indonesia behavior on stock investment decision
Alexander Decker
 
Demand and supply gap between electricity by Iram qazi
Demand and supply gap between electricity by Iram qaziDemand and supply gap between electricity by Iram qazi
Demand and supply gap between electricity by Iram qazi
IramQazi
 
Artical
ArticalArtical
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
IOSRJBM
 
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
inventionjournals
 
An analysis of investors behavior while making investment decision
An analysis of investors behavior while making investment decisionAn analysis of investors behavior while making investment decision
An analysis of investors behavior while making investment decision
aamirank
 
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
ijtsrd
 
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
Gyan Prakash
 
Determinants that influence the individual investor behavior in Stock Market
Determinants that influence the individual investor behavior in Stock MarketDeterminants that influence the individual investor behavior in Stock Market
Determinants that influence the individual investor behavior in Stock Market
Abhishek Shrivastava
 
Dissertation on behavioral finance and its impact on portfolio investment dec...
Dissertation on behavioral finance and its impact on portfolio investment dec...Dissertation on behavioral finance and its impact on portfolio investment dec...
Dissertation on behavioral finance and its impact on portfolio investment dec...
Rahmatullah Pashtoon
 
Electronic copy available at httpssrn.comabstract=1629786.docx
Electronic copy available at httpssrn.comabstract=1629786.docxElectronic copy available at httpssrn.comabstract=1629786.docx
Electronic copy available at httpssrn.comabstract=1629786.docx
SALU18
 
10120140501002
1012014050100210120140501002
10120140501002
IAEME Publication
 
An empirical analysis of factors influencing indian individual equity investo...
An empirical analysis of factors influencing indian individual equity investo...An empirical analysis of factors influencing indian individual equity investo...
An empirical analysis of factors influencing indian individual equity investo...
Alexander Decker
 
How Biases Affect Investor Behaviour
How Biases Affect Investor BehaviourHow Biases Affect Investor Behaviour
How Biases Affect Investor Behaviour
Trading Game Pty Ltd
 
D364048
D364048D364048
D364048
aijbm
 

Similar to FINAL TOPIC FOR ARTICLE.docx (20)

Impact of Financial Knowledge of Investors Investment Making Decisions
Impact of Financial Knowledge of Investors Investment Making DecisionsImpact of Financial Knowledge of Investors Investment Making Decisions
Impact of Financial Knowledge of Investors Investment Making Decisions
 
behavioral biases and investment decisions
behavioral biases and  investment decisionsbehavioral biases and  investment decisions
behavioral biases and investment decisions
 
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
A Study On Behavioral Finance To Understand The Psychological Behavior Of Ind...
 
Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
	Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...	Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
Effect of Psychological Dispositions on Intuitive Forecasting: An Experiment...
 
The cost of irrationality - how poker players perform better by avoiding cogn...
The cost of irrationality - how poker players perform better by avoiding cogn...The cost of irrationality - how poker players perform better by avoiding cogn...
The cost of irrationality - how poker players perform better by avoiding cogn...
 
The investor indonesia behavior on stock investment decision
The investor indonesia behavior on stock investment decisionThe investor indonesia behavior on stock investment decision
The investor indonesia behavior on stock investment decision
 
Demand and supply gap between electricity by Iram qazi
Demand and supply gap between electricity by Iram qaziDemand and supply gap between electricity by Iram qazi
Demand and supply gap between electricity by Iram qazi
 
Artical
ArticalArtical
Artical
 
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
Factors Influencing the Trading Behavior of Investors in Capital Market: An E...
 
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
Factors Influencing Investment Decisions of Retail Investors- A Descriptive S...
 
An analysis of investors behavior while making investment decision
An analysis of investors behavior while making investment decisionAn analysis of investors behavior while making investment decision
An analysis of investors behavior while making investment decision
 
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
Behavioural Finance Paradigms and Its Influences on Investment Decisions and ...
 
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
INVESTIGATE THE ROLE OF IMPULSIVITY IN DECISIONS MAKING DURING GAMBLING TASK:...
 
Determinants that influence the individual investor behavior in Stock Market
Determinants that influence the individual investor behavior in Stock MarketDeterminants that influence the individual investor behavior in Stock Market
Determinants that influence the individual investor behavior in Stock Market
 
Dissertation on behavioral finance and its impact on portfolio investment dec...
Dissertation on behavioral finance and its impact on portfolio investment dec...Dissertation on behavioral finance and its impact on portfolio investment dec...
Dissertation on behavioral finance and its impact on portfolio investment dec...
 
Electronic copy available at httpssrn.comabstract=1629786.docx
Electronic copy available at httpssrn.comabstract=1629786.docxElectronic copy available at httpssrn.comabstract=1629786.docx
Electronic copy available at httpssrn.comabstract=1629786.docx
 
10120140501002
1012014050100210120140501002
10120140501002
 
An empirical analysis of factors influencing indian individual equity investo...
An empirical analysis of factors influencing indian individual equity investo...An empirical analysis of factors influencing indian individual equity investo...
An empirical analysis of factors influencing indian individual equity investo...
 
How Biases Affect Investor Behaviour
How Biases Affect Investor BehaviourHow Biases Affect Investor Behaviour
How Biases Affect Investor Behaviour
 
D364048
D364048D364048
D364048
 

More from ZaienaNaeem2

Basic of Presentation.pptx for every student
Basic of Presentation.pptx for every studentBasic of Presentation.pptx for every student
Basic of Presentation.pptx for every student
ZaienaNaeem2
 
Insurance Company operations .ppt.file for business
Insurance Company operations .ppt.file for businessInsurance Company operations .ppt.file for business
Insurance Company operations .ppt.file for business
ZaienaNaeem2
 
Leasing as a sourse of finance.. types of financeFinance
Leasing as a sourse of finance.. types of financeFinanceLeasing as a sourse of finance.. types of financeFinance
Leasing as a sourse of finance.. types of financeFinance
ZaienaNaeem2
 
corporate finance ppt file for finance students
corporate finance ppt file for finance studentscorporate finance ppt file for finance students
corporate finance ppt file for finance students
ZaienaNaeem2
 
human rm.pptx
human rm.pptxhuman rm.pptx
human rm.pptx
ZaienaNaeem2
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
ZaienaNaeem2
 
bba.pptx
bba.pptxbba.pptx
bba.pptx
ZaienaNaeem2
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
ZaienaNaeem2
 
Presentation2.pptx
Presentation2.pptxPresentation2.pptx
Presentation2.pptx
ZaienaNaeem2
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
ZaienaNaeem2
 

More from ZaienaNaeem2 (10)

Basic of Presentation.pptx for every student
Basic of Presentation.pptx for every studentBasic of Presentation.pptx for every student
Basic of Presentation.pptx for every student
 
Insurance Company operations .ppt.file for business
Insurance Company operations .ppt.file for businessInsurance Company operations .ppt.file for business
Insurance Company operations .ppt.file for business
 
Leasing as a sourse of finance.. types of financeFinance
Leasing as a sourse of finance.. types of financeFinanceLeasing as a sourse of finance.. types of financeFinance
Leasing as a sourse of finance.. types of financeFinance
 
corporate finance ppt file for finance students
corporate finance ppt file for finance studentscorporate finance ppt file for finance students
corporate finance ppt file for finance students
 
human rm.pptx
human rm.pptxhuman rm.pptx
human rm.pptx
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
 
bba.pptx
bba.pptxbba.pptx
bba.pptx
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
 
Presentation2.pptx
Presentation2.pptxPresentation2.pptx
Presentation2.pptx
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
 

Recently uploaded

Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
dpbossdpboss69
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdfPDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
HajeJanKamps
 
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
deft. 2024 pricing guide for onboarding
deft.  2024 pricing guide for onboardingdeft.  2024 pricing guide for onboarding
deft. 2024 pricing guide for onboarding
hello960827
 
Pro Tips for Effortless Contract Management
Pro Tips for Effortless Contract ManagementPro Tips for Effortless Contract Management
Pro Tips for Effortless Contract Management
Eternity Paralegal Services
 
AI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your BusinessAI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your Business
Arijit Dutta
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
valvereliz227
 
L'indice de performance des ports à conteneurs de l'année 2023
L'indice de performance des ports à conteneurs de l'année 2023L'indice de performance des ports à conteneurs de l'année 2023
L'indice de performance des ports à conteneurs de l'année 2023
SPATPortToamasina
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Cover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SUCover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SU
msthrill
 
The Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac SignThe Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac Sign
my Pandit
 
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
essorprof62
 
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Herman Kienhuis
 
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
concepsionchomo153
 
list of states and organizations .pdf
list of  states  and  organizations .pdflist of  states  and  organizations .pdf
list of states and organizations .pdf
Rbc Rbcua
 
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fixKalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
satta Matta matka 143 Kalyan chart jodi 6366249026
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 

Recently uploaded (20)

Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdfPDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
PDT 99 - $3.5M - Seed - Feel Therapeutics.pdf
 
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...
 
IMG_20240615_091110.pdf dpboss guessing
IMG_20240615_091110.pdf dpboss  guessingIMG_20240615_091110.pdf dpboss  guessing
IMG_20240615_091110.pdf dpboss guessing
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
deft. 2024 pricing guide for onboarding
deft.  2024 pricing guide for onboardingdeft.  2024 pricing guide for onboarding
deft. 2024 pricing guide for onboarding
 
Pro Tips for Effortless Contract Management
Pro Tips for Effortless Contract ManagementPro Tips for Effortless Contract Management
Pro Tips for Effortless Contract Management
 
AI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your BusinessAI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your Business
 
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
欧洲杯赌球-欧洲杯赌球买球官方官网-欧洲杯赌球比赛投注官网|【​网址​🎉ac55.net🎉​】
 
L'indice de performance des ports à conteneurs de l'année 2023
L'indice de performance des ports à conteneurs de l'année 2023L'indice de performance des ports à conteneurs de l'année 2023
L'indice de performance des ports à conteneurs de l'année 2023
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Cover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SUCover Story - China's Investment Leader - Dr. Alyce SU
Cover Story - China's Investment Leader - Dr. Alyce SU
 
The Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac SignThe Steadfast and Reliable Bull: Taurus Zodiac Sign
The Steadfast and Reliable Bull: Taurus Zodiac Sign
 
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
❽❽❻❼❼❻❻❸❾❻ DPBOSS NET SPBOSS SATTA MATKA RESULT KALYAN MATKA GUESSING FREE KA...
 
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...
 
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注外围盘口-欧洲杯投注盘口app|【​网址​🎉ac22.net🎉​】
 
list of states and organizations .pdf
list of  states  and  organizations .pdflist of  states  and  organizations .pdf
list of states and organizations .pdf
 
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fixKalyan chart 6366249026 India satta Matta Matka 143 jodi fix
Kalyan chart 6366249026 India satta Matta Matka 143 jodi fix
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 

FINAL TOPIC FOR ARTICLE.docx

  • 1. Group Members: Zaiena Naeem (GR) (5075) Muhammad Talha (CR) (5150) Noor Zafar (5011) Hafiz Muhammad Ahmad Anees (5091) Muhammad Usman Ghani (5122) Submitted to: Dr. Zeeshan Anwar BBA 5th Semester Evening Section A University of Okara 7th December, 2022
  • 2. Title No. 1:  Effect of Cognitive Biases on Investment Decision Making: A Case in Okara, Pakistan. Justification: As human beings, we all have cognitive biases. A cognitive bias is an error in thinking that occurs when we are processing and interpreting information in the world around us. It affects the decisions and judgments we make. Oftentimes, they are a result of the brain’s attempt to simplify information processing. Our brain creates rules of thumb to help us make sense of the world and reach decisions with relative speed. Unfortunately, the process of speeding up the decision process can sometimes lead to errors. When it comes to investing, cognitive biases can make our investing behavior irrational. This can lead us to make undesirable financial or investment choices because we draw incorrect conclusions based on some of the thinking errors our brain is making to arrive at those decisions. To be a successful investor over the long term, we need to understand, and hopefully overcome, some common cognitive biases (Confirmation bias occurs when you only seek out information that tells you what you want to hear, Anchoring bias causes us to rely too heavily on the first piece of information we are given about a topic, Loss aversion can also lead to unnecessary risk avoidance, Overconfidence bias is the tendency for a person to overestimate their abilities). Doing so can lead to better decision making, which may help lower risk and improve investment returns over time.
  • 3. Effect of Cognitive Biases on Investment Decision Making: A Case in Okara, Pakistan. Authors: Zaiena Naeem, Noor Zafar, M Talha, Hafiz Muhammad Ahmad Anees, M Usman Ghani. Abstract:Background: Behavioral finance deals with the study of psychological influences on investors and financial markets. Investors commonly perform investment analysis through fundamental and technical analysis. The behavior of the investment market originates from the principles of psychological decision making that explains the reasons behind buying and selling stocks. Objectives: This paper aims to examine the effect of cognitive biases on investment decisions in Okara Pakistan. The effect of five cognitive biases, such as availability, anchoring, overconfidence, herd instinct, and regret aversion, is measured on rational investment decision-making. Methods: This study is based on primary data sources using non-probability (convenience method) sampling techniques. There are seven brokerage houses in Okara, and researchers selected 179 respondents involved in stock market investment. Both descriptive and inferential analyses were made to analyze the data. Results: The study discovers a link between irrationality in financial decision making and availability, overconfidence, and herd instinct biases, but anchoring and regret aversion biases had no effect on irrational investment decisions. However, though all the biases have a positive relationship with an irrational investment decision, overconfidence bias has the highest impact. Regret aversion
  • 4. bias has the least impact on investment decisions in comparison to the other four biases. Conclusion: The investors and the policymakers should focus on finding the cognitive biases and various de-biasing methods to eradicate those biases throughout investment decision-making. The findings of this study have a number of implications for investors, brokers, and governments who aim to stimulate stock market investment. Keywords: Behavioral finance, cognitive biases, financial markets, investment decisions  Dhungana, B. R., Bhandari, S., Ojha, D., & Sharma, L. K. (2022). Effect of Cognitive Biases on Investment Decision Making: A Case of Pokhara Valley, Nepal. Quest Journal of Management and Social Sciences, 4(1), 71-84. 
  • 5. The paper examines the direct and indirect effects (via investors’ risk perception) of heuristic biases on investors’ irrational behavior in decision-making. The study also investigates the moderating effect of investors’ extraversion on both the direct and the indirect associations between heuristic biases and irrational decision-making. Based on survey data collected from 247 investors registered in various brokerage houses in Pakistan and the analyses (mediation and moderation) performed using the Process Macro technique (proposed by Hayes, 2017) in SPSS, the results of this study reveal that heuristic biases positively affect investors’ irrational decision-making both directly and indirectly via risk perception. The results reveal that extraversion moderates both direct and indirect associations between heuristic biases and investors’ irrational behavior in decision-making. Our findings carry useful practical implications for organizations’ policymakers