An Investigation into The Impact of Behavioural Biases on Students Investors' Preferences Between Stocks and Index Funds

Elenida Oanca & Ali Zain-Ul-Abidin Shirazi

Student thesis: Master thesis

Abstract

The aim and objective of this thesis was to identify the behavioural biases that CBS student investors encounter when making their investment decisions. To that effect, we examined biases derived from Prospect Theory, framing effects, overconfidence and herding effect. Additionally, and more importantly, we sought to identify the role and effect of these biases on students’ preference between active and passive investment strategies, through their preference between stocks and index funds respectively.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages178