7min chapter

Making Money cover image

S4E3: How even facts can mislead you with money - Finance Professor Alex Edmans

Making Money

CHAPTER

The Pitfalls of Data Mining and Confirmation Bias in Investment Decisions

The chapter delves into how a fund manager ignored negative results from a study on gender diversity, showcasing dangers of data mining and confirmation bias in research and investments. It also explores the importance of cognitive diversity and equity in organizations, criticizing the misrepresentation of data in influential studies by companies like McKinsey.

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