Book

Thinking, Fast and Slow

Daniel Kahneman

The research behind every behavioural question you will be asked. Anchoring and base rate neglect are the two to be able to explain with an example of your own.

• Psychology and behaviour
• Decision-making
• Investing

1 idea from this book

• FrameworkPsychology and behaviour

  Anchoring and base rate neglect are the two biases that cost money

  Before estimating, ask what number is anchoring you and what the base rate is for cases like this.

  Valuation, deal pricing, forecasting, and the behavioural finance questions in hedge fund and asset management interviews.