Fin

5.
Mental accounting refers to the practice of treating money differently because of its origin, allocation, or purpose.
Effects:
• Illogical segregation of funds, thereby suboptimally allocating assets.
• Risking unnecessary amounts of "house money" - that is, amounts realized from investments.

5.
Mental accounting refers to the practice of treating money differently because of its origin, allocation, or purpose.
Effects:
• Illogical segregation of funds, thereby suboptimally allocating assets.
• Risking unnecessary amounts of "house money" - that is, amounts realized from inv

6.
How to Reduce:
• Focus on long-term investment objectives and plans.
• Use historical information for context in times of short-term events.
6.
How to Reduce:
• Focus on long-term investment objectives and plans.
• Use historical information for context in times of short-term events.
6.
How to Reduce:
• Focus on long-term investment objectives and plans.
• Use historical information for context in times of short-term events.
6.
How to Reduce:
• Focus on long-term investment objectives and plans.
• Use historical information for context in times of short-term events.