标题: Recallibility vs regret minimization [打印本页] 作者: AnalystForum 时间: 2011-7-11 19:41 标题: Recallibility vs regret minimization
Are these two the same?作者: Valores 时间: 2011-7-11 19:41
No - Recallibility is the case which you remember happened in past and you think it might again happen in future.
RM - One doesn't solve the decreasing stock and keep it until it goes up.作者: liangfeng 时间: 2011-7-11 19:41
What's the diff between Recallability and Representativeness?作者: infinitybenzo 时间: 2011-7-11 19:41
Representativeness is building on momentum. A good stock in the past will continue to be a good stock in the future.
Recallability is sayign I remember the crash of 1987 and i am fearful anytime the market goes down 100 points because i have flashbacks.作者: Chuckrox 时间: 2011-7-11 19:41
bidder Wrote:
-------------------------------------------------------
> Thanks CFAdreams
>
> So Recallability can link to loss aversion
> behaviour.
> Representativeness can lead to price
> inefficiency.
>
> Oh and here are the 6 psychological "traps":
> Anchoring
> Status quo
> Confirming evidence
> Overconfidence
> Recallability
> Prudence
The 6 traps you mentioned are primarily traps related to forecasting, correct?作者: zwjy 时间: 2011-7-11 19:41
> RM - One doesn't solve the decreasing stock and
> keep it until it goes up.
You just defined "loss aversion" - keep the losers..
Regret minimization is when an investor invests 50/50 stocks and bonds to avoid regret, in case one asset class outperforms the other. This behavioral trait can lead to avoidance of variety => less diversification..
Recallability is a trap.... RM is a behavior..作者: bodhisattva 时间: 2011-7-11 19:41
I had a hard time remembering this acronym with the topic it goes with, but figured this much out:
> Representativeness can lead to price
> inefficiency.
I thought all of these behaviors mentioned in the Behavioral Finance section lead to price inefficiency.. not just this one..作者: susana 时间: 2011-7-11 19:41
what is the best way / source to practice these traps / behaviors?
