Researchers at ASIC (Australia Secruties and Investments Commission) first tested individuals to see if they demonstrated cognitive biases such as illusion of control, framing, and ambiguity aversion. Then, they offered subjects options such as bonds, stocks, and byhrid securities and allowed them to pick which ones in which to invest. Researchers found that participants who exhibited having the illusion of control were 14% more likely to invest in hybrid bonds. They determined that lack of knowledge was the most significant factor for whether someone chose to invest in hybrid securities.
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