Stock selection is emotional, says new study

A preliminary study into the physiology of fund managers shows significant emotional responses when they trade, belying the myth that a manager's stock selection is an unemotional process.

Andrew Lo, Harris & Harris Group professor and a director at MIT Laboratory for Financial Engineering, said he is still seeking traders to take part in the experiment, which is aiming to see if the physiology of managers is different to that of other professions.

Risk seeking on losses and risk averse on gains

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