Required Rate of Return on Financial Instruments by an Individual Investor in the Context of Behavioural Finance
Required Rate of Return on Financial Instruments by an Individual Investor in the Context of Behavioural Finance

Summary/Abstract: The purpose of the article. The main research objective of this work is to examine the occurrence of three heuristics among individual investors: overconfidence, loss aversion, and the disposition effect. The study aims to show the occurrence of these heuristics in a sample of investors. Methodology. The study was conducted on a sample of 121 individual investors using an online survey based on scenario questions. The research method was selected based on the unique characteristics of behavioural finance. The research requires direct interaction with market participants, i.e., individual investors. Results of the research. The research revealed the occurrence of two out of three examined heuristics. The analysis of the responses from the study participants led to the conclusion that emotions play a significant role in influencing decision-making processes in investor behaviour.

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