Which of the following human emotions tend to affect
Investments decisions?
1) the pain of regret
2) following the crowd or "herding"
3) selective memory

Question

Quizplus · Accepted Answer

All of the above emotions tend to affect investment decisions.

1) The pain of regret can cause investors to hold onto losing investments for too long, or to avoid making risky investments altogether in fear of regretting their decision. 
2) Following the crowd or "herding" can cause investors to make irrational decisions based on others' actions, rather than objectively analyzing the investment. 
3) Selective memory can lead investors to focus only on their successful investments and forget about their losses, which can cause overconfidence and a lack of risk management in future investments.

Which of the Following Human Emotions Tend to Affect