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In what way can Compensation and bonus policies significantly impact an Investment Advisor's ethical decision-making?.
Step by step
Solved in 2 steps
- How does an investment advisor deal with a situation where he is convinced the client’s investment decisions fall outside his investment objectives and risk tolerance? What are the ethical issues?How behavorial bias affect investment behavior?what differentiates a superior investment manager from an inferior one?
- why are Overconfidence and cognitive bias, Representatives heuristic, loss aversion, herding bias, regret aversion, availability bias, and anchoring bias are important factors that contribute to the behavioral factors influencing investment decision-making.Should firms behave ethically?What is risk, and how does it affect decisions about investment?
- Is the investment risk concerned with the range of possible outcomes from aninvestment?What is an investment policy? Explain the rationale behind the formulation of an investment policy. Why is it necessary, and what factors are taken into account in drawing up an investment policy?How might one logically assess whether the acquisition of investment information or advice is economically justified?
