Financial and Economic Interpretation and Communication

ECONOMICS 1
Financial and Economic Interpretation and Communication
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ECONOMICS 2
Question 1
Intuition is a mode that processes information in a non-sequential format. The specific
forms in which intuition influences decision making is in most cases misunderstood but however,
the influence can either be emotional or cognitive (Voss, 2014). Intuition plays vital roles in
making decisions regarding investment and these may include among others;
Since intuition involves one’s knowledge in the process of decision making, it helps in
recognising some problems within the society and later apply them in solving problems related to
making investment decisions (Voss, 2014). Furthermore, intuition helps decision makers to point
out risks which are ‘nonstandard’ in the process of assessing a business for investment.
In situations where investors come to realise there are some important facts that are
required and cannot be found using computers or online resources, they can turn out to using
human knowledge, for example creativity and curiosity (Erik et al, 2012).
Also, many researchers explain intuition as an observable fact that is very effective and
indicates the potential of emotions to determine decision-making cognitive negotiation (Erik et
al, 2012). This implies that there is no need for ‘conscious thoughts’ to experience emotions
though there can be situations where positive thoughts have an effect on a person’s will. In
addition, several investors base on their intuition so solve ‘complex’ calculations and other
problems in situations where rationality cannot help (Erik et al, 2012).
According to the current research, intuition is very relevant in investment decisions as
they can be fast and effective more so in areas where one has expertise.
Question 2