(Solved) A unit trust fund manager has to make regular assessments of the future performance of share prices, both in general and in relation

A unit trust fund manager has to make regular assessments of the future performance of share prices, both in general and in relation to particular companies.

a) Discuss how the fund manager might use the following heuristics in making the assessments:

i) availability;

ii) representativeness

iii) anchoring and adjustment.

b) Discuss the biases that might arise from the use of each heuristic.

c) Tversky and Kahneman have carried out the heuristics and biases in human judgment under uncertainty. To what extent does their research provide evidence of the widespread occurrence of biased judgments by decision makers like the fund manager?

3. (25%) A unit trust fund manager has to make regular assessments of the future performance of share prices, both in general and in relation to particular companies Discuss how the fund manager might use the following heuristics in making the assessments: a. i) availability; ii) representativeness ii anchoring and adjustment. b. Discuss the biases that might arise from the use of each heuristic. Tversky and Kahneman have carried out the heuristics and biases in human judgment under uncertainty. To what extent does their research provide evidence of the widespread occurrence of biased judgments by decision makers like the fund manager? c. most widely cited rese arch into

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Availability: when the fund manager uses the information that is readily available it leads to the fund manager making sub optimal decisions. The fund managers like all of us believes on the information that is readily available and believes it ……..
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