Abstract

Behavioral finance attempts to question the efficiency of the financial market. Several anomalies of human behavior are considered as interfering factors while investors make a financial decision, which leads to the criticism of the rationality of investors. Considerable evidence has been provided by psychologists and behavioral economists which demonstrates that investors are exposed to psychological and behavioral biases. Additionally, investors resort to shortcuts during the process of decision-making, and are affected by their past investment profits or losses. They make decisions within a framework of preference, and are influenced by the investment patterns of other investors. This study examines the relationship between behavioral heuristics and biases such as overconfidence, self-attribution, and availability biases and parameters such as age, gender, profession, and income of investors.

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