Investment Psychology: Analysis, Questions, and Assignment

Running head: INVESTMENT PSYCHOLOGY
Investment Psychology
Name of the Student:
Name of the University:
Authors Note:

INVESTMENT PSYCHOLOGY
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Table of Contents
Pre-Assignment:.........................................................................................................................2
II. Investment Psychological Analysis:......................................................................................2
Answer 1:...................................................................................................................................2
Answer 2:...................................................................................................................................2
Answer 3:...................................................................................................................................2
Answer 4:...................................................................................................................................3
III. Questions:.............................................................................................................................3
Answer 1:...................................................................................................................................3
Answer 2:...................................................................................................................................3
Assignment:................................................................................................................................4
Introduction:...............................................................................................................................4
Answer 1:...................................................................................................................................4
Answer 2:...................................................................................................................................4
Answer 3:...................................................................................................................................6
Answer 4:...................................................................................................................................7
Answer 5:...................................................................................................................................8
Conclusion:................................................................................................................................9
Reference and Bibliography:....................................................................................................10

INVESTMENT PSYCHOLOGY
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Pre-Assignment:
II. Investment Psychological Analysis:
Answer 1:
From the two investment approaches the value approach to investing is considered the
most viable option, which could help in generating high rate of return from investment.
Answer 2:
The above investment scope needs to be chosen, as the growth prospect for the
investment is relatively high in comparison to the previous investment scope. The high level
of investments conducted in the above figure is relatively higher in comparison to pervious
investment scope.
Answer 3:
The selection of investment is mainly based on the risk capability and approach of the
investors. Moreover, from the options profit maximization is to be chosen, as it helps in
generating higher returns for the investment.

INVESTMENT PSYCHOLOGY
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Answer 4:
The use of online business is most viable approach for investment bankers, as they
can increase their reach in attracting more investors within their vicinity. The offline business
has its advantages and disadvantages, while the availability and scope of online business is
immense, which could increase the number of investors that could be attracted from online
business.
III. Questions:
Answer 1:
The key factors of becoming a successful investor is by having adequate knowledge
regarding the long-term planning with a keen interest on fundamentals of the business. This
would eventually allow the investors to generate higher rate of returns from investment, as
the adoption of long-term planning and fundamental evaluation would eventually help in
selecting adequate investment opportunities (Horvath and Rothlin 2017).
Answer 2:
Psychological approach towards selling the investment fund is by using adequate
selling techniques to generate higher rate of returns from investment. However, there is no
excuse for use of unethical measures in selling the investment, as this could hamper the
capital market. The unethical measure was relatively used by banks during the 2008 financial
Crisis to reduce the exposure in volatile property market. This led to the biggest financial
crisis in the current era, which was a relatively conducted due to the unethical measures used
by companies in selling bad investment funds (Bishop 2016).