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How regret aversion bias can cause irrational decisions? Mistakenly expect too much returns and underestimate the...

How regret aversion bias can cause irrational decisions?

Mistakenly expect too much returns and underestimate the risk of an investment.

Avoid taking decisions due to the fear that the outcome of decisions might be unfavorable.

Prefer current income over capital appreciation thereby causing inappropriate asset allocation.

Investors take decisions which enhances self esteem and avoid the ones that causes regret.

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Avoid taking decisions due to the fear that the outcome of decisions might be unfavorable.

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