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What Is the Framing Effect?

By Kristi Waterworth – Updated Apr 9, 2025 at 12:36PM

Key Points

  • Framing effect influences investment choices by skewing perception of risk and reward.
  • Identify and analyze all investment details to mitigate emotional biases introduced by framing.
  • Stay informed and focus on long-term goals to effectively counteract the framing effect's impact.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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