Behavioural Finance
Framing Effect
Definition
What is Framing Effect?
Changing a decision because the same information is presented differently.
Example in practice
How This Looks in Practice
A 90% chance of success feels safer than a 10% chance of failure.
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Related Terms
Behavioural Finance
Loss Aversion
The tendency to feel losses more strongly than equivalent gains.
Behavioural FinanceOverconfidence Bias
The tendency to overestimate one's knowledge, forecasting ability, or control.
Behavioural FinanceConfirmation Bias
The tendency to seek or interpret information that supports an existing belief.
Sustainable InvestingESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.