Question: briefly define the concepts, differentiate them from each other and describe how they would be applied for an individual investor. Miscalibration and excessive optimism Underdiversification

briefly define the concepts, differentiate them from each other and describe how they would be applied for an individual investor.

  1. Miscalibration and excessive optimism
  2. Underdiversification and excessive trading
  3. Fundamental risk and noise-trader risk
  4. Anchoring and herding
  5. Exponential and hyperbolic discount functions (i.e. Present biased preferences)
  6. A good company and a good stock

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