5. Is it possible to enhance portfolio performance using behavioral finance? Why?

Why not?
Behavioral portfolio management focuses instead on specific manager
behaviors of Strategy, Consistency and Conviction. it's possible to boost portfolio
performance using behavioral finance. the utilization of behavioral finance teaches
us the Strategy we'd like to boost our performance. Strategy may be a disciplined
process someone that uses to earn superior returns. The strategy should be pursued
consistently, and thus we expect managers to move and move about the investment
universe identifying the foremost attractive investments and responding to changing
conditions.
Behavioral portfolio management focuses instead on specific manager
behaviors of Strategy, Consistency and Conviction. it's possible to boost portfolio
performance using behavioral finance. the utilization of behavioral finance teaches
us the Strategy we'd like to boost our performance. Strategy may be a disciplined
process someone that uses to earn superior returns. The strategy should be pursued
consistently, and thus we expect managers to move and move about the investment
universe identifying the foremost attractive investments and responding to changing
conditions. It should take a high-conviction positions focusing in on their best ideas.
that's how we improve our portfolio performance.
 1. How is heuristics and biases framework useful in making financial
decision?
- People make decisions every day and we’re sometimes careless with
decisions no matter how big and small they are. Understanding how do
we make our choices is a part of our ability to think with a solution/
decision. The utilization of Heuristics and Biases Framework help us to
generate an explanation on how we should always make decisions. It is made
to guide us and understandsd the choice making process and identify what
are the factors that influence our deciding within the present and
future. People make decisions about many things that influences their choices
often, the selection making process is fairly specific to the selection being
made. Some choices are simple , and easy, while others are difficult that
needs many steps in making the selections. Deciding that the biases influence
people by causing them to influence this might lead to poor decisions,that is
why the biases enable individuals to make efficient decisions with assistance
of heuristics in making financial decisions.
2. Discus the implication of overconfidence for financial decision making?
- Overconfidence is a bias which you have got an excessive amount
of faith within yourself in making decisions that you underestimate the range
of possibilities that truly exist. Underestimating the extent of possible
losses, for instance, and underestimating investment risks. Since
overconfidence is seen within the field of management and finance, especially
when making investment decisions. The implication of overconfidence for
financial decision making has a negative impact on a person especially in
their capabilities to create things or work in their field instead of long-term
benefits and value implications of such decisions and lessen their flexibility to
create a sound judgement that cause a major threat when it comes to
decision making. If being overconfident doesn’t overcome it leads in being
over ambitious when making decisions within the long-term and may have
failed because of the poor judgement in certain situation making a costly
mistake and cost a major threat to their judgment capacity within and this
threatens their abilities to create sound financial decisions. Therefore, the
concept of overconfidence is important in the field management as well as
finance.