This is a summary of links featured on Quantocracy on Monday, 02/27/2017. To see our most recent links, visit the Quant Mashup. Read on readers!
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Misattributing Bad Behavior [Flirting with Models]The behavior gap is the difference between the returns on an investment and the returns that an investor realizes in that investment. Behavioral biases ingrained in human nature, such as anchoring, hindsight, and overconfidence drive emotional decisions that can lead to a behavior gap, but quantitative assessments of investor underperformance is often misleading, especially on an aggregated basis.