Neural Basis of Financial Risk Taking

Summary link Investors systematically deviate from rationality when making financial decisions, yet the mechanisms responsible for these deviations have not been identified. Using event-related fMRI, we examined whether anticipatory neural activity would predict optimal and suboptimal choices in a financial decision-making task. We characterized two types of deviations from the optimal investment strategy of a […]

Good Piece on Behavioral Finance and Cognitive Challenges

We just found this article on behavioral economics and financial decisions from Australia.   It is long and complicated but lays out the significant challenges from the investor side of the equation.  Remember, that all advisors bring the same cognitive challenges and tendencies to their work.  We propose that financial services offerings, products and fee […]