Question 1

What is the relationship between the theory of mind and investment decisions?

Accepted Answer

People "…are rather good at inferring information from the order flow, despite their lack of formal financial training." The participants without private information correctly forecasted the price direction two-thirds of the time, which illustrates that they correctly identified the informed trader and adjusted their trades accordingly. theory of mind originates in the most developed part of the brain, the frontal and medial part of the cortex.

Question 2

What are the three different measures of intelligence?

Accepted Answer

Intelligence quotient (IQ) is a measure of fluid intelligence that measures reasoning ability. Cognitive reflection is the tendency to use an analytical mode of thinking rather than an intuitive mode. The theory of mind refers to a person's ability to infer the intentions of others.

Question 3

How is cognitive aging associated with financial fraud?

Accepted Answer

A decline in cognitive ability of 34% increases the odds of becoming a victim of financial fraud by 33%.

Question 4

How do financial knowledge and cognitive ability interact over time?

Accepted Answer

The answer of How do financial knowledge and cognitive ability...

Question 5

How does cognitive reflection relate to financial decisions?

Accepted Answer

The answer of How does cognitive reflection relate to financial...

Question 6

How is cognitive aging related to financial decisions?

Accepted Answer

The answer of How is cognitive aging related to financial...

Question 7

How does fluid intelligence impact financial decisions?

Accepted Answer

The answer of How does fluid intelligence impact financial decisions?...

Question 8

What is cognitive aging?

Accepted Answer

The answer of What is cognitive aging?...

Exam 6: Types of Intelligence and Investment Performance; Impaired Cognitive Function and Diminished Decision Making