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ERIC Number: ED443326
Record Type: Non-Journal
Publication Date: 2000-Apr
Pages: 16
Abstractor: N/A
Reference Count: N/A
Brain Hemispheric Consensus and the Quality of Investment Decisions.
Boyd, Michael
This on-going study explores the hypothesis that stock fund managers who underperform do so because they make bad decisions, and examines whether their choices can be improved by using a decision model that invokes principles of brain hemispheric consensus. The study, begun in fall 1999, involves two groups of business students: the control group consists of 17 undergraduate finance majors; the test group consists of 22 students enrolled in an off-campus executive Master of Business Administration program. All students completed a hemispheric consensus prediction (HCP) profile to determine brain hemispheric dominance. Each participant received an identical list of 20 stocks drawn from the Standard & Poors 500 index, as well as limited amounts of fundamental and technical information about each stock. Test-group students received a set of stock selection procedures built around Loye's decision model, a multi-step, brain hemispheric consensus-seeking decision-making technique; control-group students received more general instructions. Students were told to select a portfolio that would outperform the market over three to six months; they kept journals of their findings, observations, and thought processes, and their stocks were tracked. Preliminary results mildly support the use of hemispheric consensus in decision making for picking portfolio investments. The HCP profile is appended. (SM)
Publication Type: Reports - Research; Speeches/Meeting Papers; Tests/Questionnaires
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A