Bournelorth Co (march/june 2017)

part(c) can i assess behavioral factors using these statement for each question only changing terms according to the scenario and using the same statement. i am sorry it is a theory question but the examiner explain in debt which is difficult to grasp , i have made the notes in simple terms from your lectures. Utility:-Investor not selling shares , holding shares based on their belief that share price of IT sector will go up and therefore not making rational decision. Look at all relevant information:-Investor buying shares based on other investor buying shares too in the IT sector a herd instinct. Rational:-Attach more importance to the information that they know such as raising finance through equity is risky than debt and therefore not paying importance to other information.