In the book, "The Psychology of Investing", John Nofsinger states that the "human mind is so sophisticated and human emotions are so complex that the emotions of fear and greed do not adequately describe the psychology that affects people as they make investment decisions". 

Suppose you work as a private client advisor in a wealth management firm. Your supervisor has asked you to write a report on how research in behavioral finance can be applied to your role. 

Select any two (2) applications of behavioral finance that you believe are particularly significant and evaluate how they be applied to your investment advisory role. 

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As a private client advisor in a wealth management firm incorporating insights from behavioral finance can greatly enhance your ability to understand and assist clients in making investment decisions ... View the full answer