Question

The readings talked about problems of Financial Management Myopia and Spreadsheet Mirage. What do these concepts mean to you? Do you believe in them? Have you had experience with these issues in the past (yourself or someone you know)? How specifically will you avoid falling into these traps?

Please do someone that I know

Answer 1

financial management myopia:myopia means eye condition of nearsightedness,in finance myopia means investor focus on short term based outcomes rather then to think rationally and take decision about investment.financial myopia appears when investor constantly monitor market to complete short term desire and emotions.Market is volatile in nature to avoid myopia choose a balance systematic investment plan and keep long term thinking about return .

Spreadsheet Mirage :It means limited usefulness of spread sheet, spreadsheet traditionally can only report and manipulate data.for taking financial decision managers,cfo,concerned officers require more insights and linkage between different reports.the decision making process become slow.

To avoid this situation uses charts ,macros,and functions together means higher literacy and skilled to use excel functions,or other tools for synthesizing rports ,data.