Questions and Answers of Social Marketing Behavior Change

List and explain some fundamental issues of behavioral finance.
Provide an overview of the behavioral finance perspectives of risk.
Define the heuristic biases of representativeness, anchoring, and mental accounting.
Define and describe the process of worrying within the finance domain.
Discuss the main differences between the traditional and the modern finance paradigm in understanding the behavior of individual investors.
Explain the broad implications of studies of genetics, neural roots, and personal life experiences for understanding the behavior of individual investors.
Discuss the disposition effect and the proposed explanations for this effect.
Identify the social factors that influence individual investor decisions and discuss the importance of considering the social context when making investment decisions.
Discuss whether institutional investors are subject to behavioral biases to the same extent as individual investors.
Explain whether mood, not directly related to financial fundamentals, affects institutional investors.
Discuss whether evidence showing that institutions herd with their trades supports irrational (market destabilizing) or rational (market stabilizing) reasons for institutional herding.
Identify how institutions can exploit behavior biases of individual investors’ in their trading choices.
Discuss how institutional agents can use behavioral finance to benefit their clients.
Identify and explain three psychological factors that differentiate CEOs in the agency and stewardship frameworks.
Discuss how CEO optimism might lead to poor capital investments.
Explain how a CEO might become overconfident.
Identify and explain group dynamic biases that might affect a board of directors.
Explain the various regulatory regimes that encompass financial planners and advisors, and identify when a particular advisor would fit under each regime.
Discuss the agency costs involved in receiving professional financial advice and how to mitigate those costs.
Describe the common compensation structures used by financial advisory firms, and identify potential conflicts of interest within each compensation structure.
Discuss the characteristics of individuals who typically employ the services of financial planners and advisors.
Discuss whether regulation solves the problem of bias in analysts’ reports.
Discuss empirical evidence about the value of financial advice.
Identify two incentives or environmental factors that increase analyst bias.
Identify analyst characteristics that reduce analyst bias.
Discuss whether the market recognizes and adjusts for the bias in analysts’ reports.
Describe the primary steps of the portfolio management process.
Compare the structure of traditional and alternative asset management firms and identify biases that may arise as a result of their differences.
Describe the disposition effect and how it affects portfolios based on an investor’s utility.
Identify the distinguishing characteristics of a traditional psychopath.
Contrast the different biases displayed by male and female portfolio managers and the consequences of each on their respective portfolios.
Explain how traditional and financial psychopaths differ.
Discuss the key changes in the economic and financial environment that facilitated an increase in the psychopathic- like behavior exhibited by financial professionals.
Explain why correctly identifying financial psychopaths is important.
Define HNWIs and discuss the demographic trend.
Identify the key players in the wealth management industry in the United States.
Discuss the different assumptions and approaches of behavioral vs. traditional finance.
Describe goal- based wealth management and holistic investing.
Define overconfidence and give some examples of how overconfidence affects trading strategy.
Describe the main differences between gregarious and contrarian investment strategies.
Explain the meaning of investor sentiment and provide some examples.
Define possible solutions to mitigate opportunistic behavior in trading simulations.
Explain why frequent stock trading is bad for investor returns.
Identify the major factors that might drive frequent trading.
Differentiate among recreational, aspirational, and sensation- seeking motives for investing, and explain which of these motives lead to the greatest trading frequency.
Identify and explain the gender differences that exist in investing and gambling behavior.
Discuss how mobile technology is likely to affect frequent trading.
Discuss the prevalence of frequent stock trading.
Explain how men and women view investing differently and why advisors should know this.
Explain why women often lack confidence about financial matters and how this may affect their financial decisions.
Identify several important financial concerns of women.
Discuss how the caregiver role affects investing.
Discuss how advisors should treat women.
Explain why millennials are distrustful of the financial services industry.
Explain how millennials differ from baby boomers other than age.
Discuss how financial advisors can engage millennials.
Explain how the money habits of millennials disprove the stereotype that they are a lazy and an entitled generation.
List the six steps of the financial planning process as defined by CFP Board of Standards and Financial Planning Standards Board.
Explain why financial planning clients tend to rely on secondary markers of quality when judging the advice they receive from their advisors.
Discuss how the availability heuristic can affect a financial planning client’s perception of financial planning recommendations and/ or propensity to act on them.
Describe how the mental biases of overconfidence, anchoring, and loss aversion can interact to cause financial planning clients to make suboptimal decisions.
Explain the difference between financial advisors and brokers.
Discuss the purpose of financial advice to consumers.
Describe the types of consumers who are more likely to look for financial advice.
Explain why high- quality financial advice may not reach those who would benefit the most from it.
Describe characteristics of financial advisors that affect the degree to which consumers follow their advice.
Explain the four primary responses to risk.
Discuss the three primary types of hazards associated with risk management.
Discuss the three most prevalent risk attitudes.
Identify and discuss the five main types of insurance for individuals.
Discuss three subcategories of behavioral finance theory.
Identify the issues that create differences between estate planning and other areas of financial planning that can impede or prevent progress.
Discuss the dimensions that differentiate estate planning from other areas of financial planning and wealth management in terms of the emotions accompanying decision making.
Explain why estate planning calls for collaboration between the planner and client, as well as between the client and inheritors.
Discuss how estate planning presents unusual challenges for the legal or planning professional.
Explain how transference or counter- transference might play a role in professional engagement.
Discuss several biases that individuals should overcome in the financial planning process.
Discuss the biases individuals have when considering their need for financial planning.
Discuss the rationale for hiring and the criteria for selecting a financial professional.
Explain how employers can nudge employees toward financial security.
Describe how financial planners can nudge clients toward financial security.
Define tactical asset allocation (TAA) and discuss the advantages and disadvantages relative to strategic asset allocation (SAA).
Discuss the assumptions used in modern portfolio theory (MPT) and traditional finance models.
Discuss the shortfalls of mean- variance optimization (MVO) portfolios and how the Black- Litterman Model attempts to address these shortfalls.
Distinguish between cognitive and emotional errors, and provide an example of each.
Discuss the advantages and disadvantages to mental accounting and how investors can manage this cognitive error.
Explain the observed return performance of mutual funds, hedge funds, and pension funds.
Explain the similarities and differences between mutual funds and hedge funds.
Identify the behavioral biases demonstrated by fund managers.
Identify the behavioral biases demonstrated by those selecting money managers and related products.
Explain the trends in relative demand for active and passive strategies by both mutual funds and ETFs.
Identify several irrational reasons for acquisitions.
Discuss how globalfocusing can reduce risk the way conglomeration did previously.
Explain how HR issues during acquisition have changed since 2000.
Explain the reasons the success rate of international acquisitions has improved.
Explain how passion plays in a portfolio containing art.
Elaborate on how a client might view adding art as an asset class to a current portfolio.
Discuss the role of risk mitigation for art investments.
Discuss the role of social media in information dissemination as related to art.
Justify the increasing use of “commodities” as a term to describe holdings.

Showing 1 - 100 of 397