Question: Nofsinger, J . R . ( 2 0 1 8 ) . The psychology of investing. Routledge Chapter 4 - Risk Perceptions Topic A -

Nofsinger, J

.

. (2018) .

The psychology of investing. Routledge

Chapter

4 -

Risk Perceptions

Topic A

-

What examples in life have you seen of cognitive dissonance at work? In your own life? In those around you?

Topic B

-

How does cognitive dissonance explain why investors hold loser stocks they own while being quick to sell loser actively managed mutual funds? What is the relation to Disposition Effect?

Chapter

8 -

Representativeness and Familiarity

Topic C

-

A statement found in every mutual fund prospectus is "Past performance is not indicative of future performance." Yet investors tend to use past performance as an important factor in making investment decisions. Why?

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