The Story of Behavioral Finance

The Story of Behavioral Finance

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This book will take your understanding of finance to the next level. The Story of Behavioral Finance is about qfinance in the real worldq-it's finance theory with real people and real institutions. What happens when your portfolio manager sets out not to maximize your return but rather to maximize his own compensation and minimize his own career risk? Why didn't rational investors short high-flying Internet companies back in 1999? Why was it that so many of the firms that went public in 1999 and 2000 for hundreds of millions of dollars subsequently went bankrupt? These are the types of questions that will be answered in this book. The Story of Behavioral Finance will cover a lot of ground. We will cover the two main strands of behavioral finance, investor psychology and limits to arbitrage, and we'll apply these concepts to a wide array of financial market phenomena. We will explore, for example, why it is that almost no one seems to qbeat the marketq despite that fact that there are often easily spotted price inefficiencies.Research undertaken by the private sector is of course more secretive than research conducted by academics. There are some exceptions to this. There has been an increase in practitioners co-authoring papers with academics. Moreover anbsp;...

Title:The Story of Behavioral Finance
Author:Brandon Adams, Brian Finn
Publisher:iUniverse - 2006


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