Abstract
Personality captures a person's essence. Understanding one's personality helps explain and predict the decisions an individual makes and what a person will do. This chapter focuses on the predominant structural model of personality—the Five‐Factor Model—which encapsulates personality using five higher‐order traits: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience/Intellect. The Five‐Factor Model is rooted in biology and is genetically based. Personality traits are a major aspect of risk taking and overconfidence behaviors. Understanding personality can improve decision making if it helps to regulate and override dispositional tendencies leading to suboptimal outcomes.
| Original language | English |
|---|---|
| Title of host publication | Investor Behavior |
| Subtitle of host publication | The Psychology of Financial Planning and Investing |
| Editors | H. Kent Baker, Victor Ricciardi |
| Publisher | Wiley |
| Chapter | 6 |
| Pages | 99-115 |
| Number of pages | 17 |
| ISBN (Electronic) | 9781118813454 |
| ISBN (Print) | 9781118492987 |
| DOIs | |
| Publication status | Published - 31 Jan 2014 |