Identifying psychological traits and their impact on an individual's ability to financial forecast
Do psychological traits affect an individual’s ability to carry out financial forecasting? While traditional economic theories had deemed financial forecasting irrelevant, alternative theories such as behavioural economics were conceptualised to bridge the gaps within existing literature. To better...
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| Main Authors: | , , |
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| Format: | Final Year Project |
| Language: | English |
| Published: |
Nanyang Technological University
2023
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/166574 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Do psychological traits affect an individual’s ability to carry out financial forecasting? While traditional economic theories had deemed financial forecasting irrelevant, alternative theories such as behavioural economics were conceptualised to bridge the gaps within existing literature. To better understand this correlation, pre-registered learning-to-forecast experiments (LtFE) and other tests such as the eye gaze test were conducted to measure their varying levels of psychological traits. Findings suggest that Theory of Mind (ToM), and an individual’s cognitive ability is positively correlated to financial forecasting accuracy. However, ToM and the other psychological traits proved to be statistically insignificant in explaining the relationship between psychological traits and financial forecasting prowess, prompting further studies to be done in the future to explore this correlation. |
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