Question: ver the last twenty years or so, progress in Information Technology (IT) has made it much easier and cheaper for individual investors to trade in

ver the last twenty years or so, progress in Information Technology (IT) has made it much easier and cheaper for individual investors to trade in financial markets. Most of this trend has been driven by the growth in the ability of individual investors to trade on Internet platforms; whereas, in the past they would have to initiate trades by telephone or in writing. If overconfidence is a substantial behavioral bias among individual investors, do you think this technological trend has increased or decreased the investment returns of individual investors? Why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A small publisher wants to keep data about its books and authors. What are possible business rules (must come from the real world)? Draw a conceptual ERD for the publisher.

1,A researcher measures the stock-market participation behavior of residents of two cities: Buffalo and Syracuse. She observes that in Buffalo, sociable and non-sociable residents have the same...

Over the last twenty years or so, progress in Information Technology (IT) has made it much easier and cheaper for individual investors to trade in financial markets. Most of this trend has been...

QUESTION: Estimate an appropriate cost of capital to use in valuing the teak plantation investment. Please be sure to include a discussion of how you propose to adjust your cost of capital estimate...

Old MathJax webview Q1. Pen down the understanding of the business and industry that Seagate Technology is engaged in. (You may use B Canvas Model or Porter's 5 Forces, if you may deem fit) Q2....

Assess the arguments he makes in defence of globalization. How far are these arguments supported by what you see happening in any business you have worked or are familiar with. In this Alcuin...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

I need short journal entries for these articles, please. 1) Learning Objectives By the end of this section, you will be able to: Explain the various functions of money Contrast commodity money and...

MRKT 310 Principles of Marketing Strategic Marketing & Value for the Customer Please use the service offering below; Lyft PRODUCT CHOICE & CONTENT Your focus will be on the domestic, or U.S....

1. What accounting issues have been addressed in the article? Briefly summarise the issues in 2-3 sentences. 2. In terms of the accounting issue being discussed, what did you agree/disagree with in...

Given Giulio's goal to take the company public, he has asked you, a CPA, to provide him with advice on some of the key areas of governance that will need to be considered. For each of the headings...

A manufacturer is using statistical process control analysis on a new machine model to determine if that model should be purchased. Questions 32 to 35 pertain to Scenario 8. (4 marks) Question 32 (1...

A forward contract allows a company to: Protect against credit risk Buy or sell a stock at a future date Buy or sell a currency at a specific future date at a fixed exchange rate Exchange a currency...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".