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Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!
Tuesday, October 2 • 11:30am - 12:20pm
D2a - Confidence, Overconfidence and Investor Decisions: Are You Your Own Worst Enemy?

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Individuals have lower levels of financial knowledge than they did in prior years (NFCS 2015). However, despite the lower knowledge levels, individuals report higher confidence in their knowledge. This gap, between perceived knowledge and actual knowledge, is overconfidence. Overconfidence refers to an individual’s propensity to overestimate the accuracy of his or her estimates, resulting in narrow confidence intervals, an overestimation of precision, and an underestimation of risk. Using FINRA's 2015 National Financial Capability Investor Survey, this analysis explores how overconfidence is related to investor characteristics and decisions. Is too much confidence in your investing knowledge harmful to your investment performance?

Author(s): Colleen Tokar Asaad

Presenters
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Colleen Tokar Asaad

Assistant Professor of Finance, Baldwin Wallace University


Tuesday October 2, 2018 11:30am - 12:20pm
Michigan 1B

Attendees (2)