A Behavioral Approach to Asset Pricing

A Behavioral Approach to Asset Pricing
Author: Hersh Shefrin
Publsiher: Elsevier
Total Pages: 618
Release: 2008-05-19
ISBN 10: 9780080482248
ISBN 13: 0080482244
Language: EN, FR, DE, ES & NL

A Behavioral Approach to Asset Pricing Book Review:

Behavioral finance is the study of how psychology affects financial decision making and financial markets. It is increasingly becoming the common way of understanding investor behavior and stock market activity. Incorporating the latest research and theory, Shefrin offers both a strong theory and efficient empirical tools that address derivatives, fixed income securities, mean-variance efficient portfolios, and the market portfolio. The book provides a series of examples to illustrate the theory. The second edition continues the tradition of the first edition by being the one and only book to focus completely on how behavioral finance principles affect asset pricing, now with its theory deepened and enriched by a plethora of research since the first edition

Textbook Outlines Highlights and Practice Quizzes

Textbook Outlines  Highlights  and Practice Quizzes
Author: Hersh Shefrin
Publsiher: Unknown
Total Pages: 50
Release: 2013
ISBN 10: 9781478473336
ISBN 13: 1478473339
Language: EN, FR, DE, ES & NL

Textbook Outlines Highlights and Practice Quizzes Book Review:

Behavioral Finance and Capital Markets

Behavioral Finance and Capital Markets
Author: A. Szyszka
Publsiher: Springer
Total Pages: 335
Release: 2013-09-04
ISBN 10: 113736629X
ISBN 13: 9781137366290
Language: EN, FR, DE, ES & NL

Behavioral Finance and Capital Markets Book Review:

Behavioral Finance helps investors understand unusual asset prices and empirical observations originating out of capital markets. At its core, this field of study aids investors in navigating complex psychological trappings in market behavior and making smarter investment decisions. Behavioral Finance and Capital Markets reveals the main foundations underpinning neoclassical capital market and asset pricing theory, as filtered through the lens of behavioral finance. Szyszka presents and classifies many of the dynamic arguments being made in the current literature on the topic through the use of a new, ground-breaking methodology termed: the General Behavioral Asset Pricing Model (GBM). GBM describes how asset prices are influenced by various behavioral heuristics and how these prices deviate from fundamental values due to irrational behavior on the part of investors. The connection between psychological factors responsible for irrational behavior and market pricing anomalies is featured extensively throughout the text. Alternative explanations for various theoretical and empirical market puzzles - such as the 2008 U.S. financial crisis - are also discussed in a convincing and interesting manner. The book also provides interesting insights into behavioral aspects of corporate finance.

Behavioralizing Finance

Behavioralizing Finance
Author: Hersh Shefrin
Publsiher: Now Publishers Inc
Total Pages: 198
Release: 2010-03-01
ISBN 10: 1601983301
ISBN 13: 9781601983305
Language: EN, FR, DE, ES & NL

Behavioralizing Finance Book Review:

Behavioralizing Finance suggests that finance is moving to a new paradigm that combines structural features from neoclassical finance and realistic assumptions from behavioral finance. The behavioralization of finance involves intellectual shifts by two groups - the first shift features neoclassical economists explicitly incorporating psychological elements into their models and the second shift features behavioral economists developing a systematic, rigorous framework. Behavioralizing Finance starts by describing the highlights of the behavioral finance literature and identifying some of the weaknesses of this literature. The remainder of the volume has two main objectives: To discuss works which have emerged since the past surveys appeared, or which those surveys overlooked for one reason or another. To present some ideas about trends toward a unifying framework for behavioral finance that captures some of the rigor in neoclassical finance. Behavioralizing Finance provides a structured approach to behavioral finance in respect to underlying psychological concepts, formal framework, testable hypotheses, and empirical findings. A key theme of the volume is that the future of finance will combine realistic assumptions from behavioral finance and rigorous analysis from neoclassical finance."

Behavioral Corporate Finance

Behavioral Corporate Finance
Author: Hersh Shefrin
Publsiher: McGraw-Hill Education
Total Pages: 320
Release: 2017-03-13
ISBN 10: 9781259277207
ISBN 13: 1259277208
Language: EN, FR, DE, ES & NL

Behavioral Corporate Finance Book Review:

Behavioral Corporate Finance provides instructors with a comprehensive pedagogical approach for teaching students how behavioral concepts apply to corporate finance. The primary goal is to identify the key psychological obstacles to value maximizing behavior, along with steps that managers can take to mitigate the effects of these obstacles.

Behavioral Finance

Behavioral Finance
Author: H. Kent Baker,John R. Nofsinger
Publsiher: John Wiley & Sons
Total Pages: 768
Release: 2010-10-01
ISBN 10: 9780470769683
ISBN 13: 0470769688
Language: EN, FR, DE, ES & NL

Behavioral Finance Book Review:

A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Portfolio Theory and Management

Portfolio Theory and Management
Author: H. Kent Baker,Greg Filbeck
Publsiher: Oxford University Press
Total Pages: 767
Release: 2013-03-07
ISBN 10: 0199829691
ISBN 13: 9780199829699
Language: EN, FR, DE, ES & NL

Portfolio Theory and Management Book Review:

Portfolio Theory and Management examines the foundations of portfolio management with the contributions of financial pioneers up to the latest trends. The book discusses portfolio theory and management both before and after the 2007-2008 financial crisis. It takes a global focus by highlighting cross-country differences and practices.

Popularity A Bridge between Classical and Behavioral Finance

Popularity  A Bridge between Classical and Behavioral Finance
Author: Roger G. Ibbotson,Thomas M. Idzorek,Paul D. Kaplan,James X. Xiong
Publsiher: CFA Institute Research Foundation
Total Pages: 160
Release: 2021
ISBN 10: 1944960619
ISBN 13: 9781944960612
Language: EN, FR, DE, ES & NL

Popularity A Bridge between Classical and Behavioral Finance Book Review:

Classical and behavioral finance are often seen as being at odds, but the idea of “popularity” has been introduced as a way of reconciling the two approaches. Investors like or dislike various characteristics of securities for rational reasons (as in classical finance) or irrational reasons (as in behavioral finance), which makes the assets popular or unpopular. In the capital markets, popular (unpopular) securities trade at prices that are higher (lower) than they would be otherwise; hence, the shares may provide lower (higher) expected returns.This book builds on this idea and expands it in two major ways. First, it introduces a rigorous asset pricing model, the popularity asset pricing model (PAPM), which adds investor preferences for security characteristics other than the risk and expected return that are part of the capital asset pricing model. A major conclusion of the PAPM is that the expected return of any security is a linear function of not only its systematic risk (beta) but also of all security characteristics that investors care about. The other major contribution of the book is new empirical work that, while confirming the well-known premiums (such as size, value, and liquidity) in a popularity context, supports the popularity hypothesis on the basis of portfolios of stocks based on such characteristics as brand value, sustainable competitive advantage, and reputation. Popularity unifies the factors that affect price in classical finance with those that drive price in behavioral finance, thus creating a unifying theory or bridge between classical and behavioral finance.

Advances in Behavioral Finance

Advances in Behavioral Finance
Author: Richard H. Thaler
Publsiher: Princeton University Press
Total Pages: 712
Release: 2005-07-25
ISBN 10: 0691121753
ISBN 13: 9780691121758
Language: EN, FR, DE, ES & NL

Advances in Behavioral Finance Book Review:

A definitive and wide-ranging overview of developments in behavioural finance over the past ten years. This second volume presents twenty recent papers by leading specialists that illustrate the abiding power of behavioural finance.

Advanced Asset Pricing Theory

Advanced Asset Pricing Theory
Author: Ma Chenghu
Publsiher: World Scientific Publishing Company
Total Pages: 816
Release: 2011-01-03
ISBN 10: 1911299522
ISBN 13: 9781911299523
Language: EN, FR, DE, ES & NL

Advanced Asset Pricing Theory Book Review:

This book provides a broad introduction of modern asset pricing theory with equal treatments for both discrete-time and continuous-time modeling. Both the no-arbitrage and the general equilibrium approaches of asset pricing theory are treated coherently within the general equilibrium framework.The analyses and coverage are up to date, comprehensive and in-depth. Topics include microeconomic foundation of asset pricing theory, the no-arbitrage principle and fundamental theorem, risk measurement and risk management, sequential portfolio choice, equity premium decomposition, option pricing, bond pricing and term structure of interest rates. The merits and limitations are expounded with respect to allocation and information market efficiency, along with the classical expectations hypothesis concerning the information content of yield curve and bond prices. Efforts are also made towards the resolution of several well-documented puzzles in empirical finance, which include the equity premium puzzle, the risk free rate puzzle, and the money-ness bias phenomenon of Black-Scholes option pricing model.The theory is self-contained and unified in presentation. The inclusion of proofs and derivations to enhance the transparency of the underlying arguments and conditions for the validity of the economic theory makes an ideal advanced textbook or reference book for graduate students specializing in financial economics and quantitative finance. The explanations are detailed enough to capture the interest of those curious readers, and complete enough to provide necessary background material needed to explore further the subject and research literature.

Finance for Normal People

Finance for Normal People
Author: Meir Statman
Publsiher: Oxford University Press
Total Pages: 396
Release: 2017-04-03
ISBN 10: 0190626488
ISBN 13: 9780190626488
Language: EN, FR, DE, ES & NL

Finance for Normal People Book Review:

Finance for Normal People teaches behavioral finance to people like you and me - normal people, neither rational nor irrational. We are consumers, savers, investors, and managers - corporate managers, money managers, financial advisers, and all other financial professionals. The book guides us to know our wants-including hope for riches, protection from poverty, caring for family, sincere social responsibility and high social status. It teaches financial facts and human behavior, including making cognitive and emotional shortcuts and avoiding cognitive and emotional errors such as overconfidence, hindsight, exaggerated fear, and unrealistic hope. And it guides us to banish ignorance, gain knowledge, and increase the ratio of smart to foolish behavior on our way to what we want. These lessons of behavioral finance draw on what we know about us-normal people-including our wants, cognition, and emotions. And they draw on the roles of these factors in saving and spending, portfolio construction, returns we can expect from our investments, and whether we can hope to beat the market. Meir Statman, a founder of behavioral finance, draws on his extensive research and the research of many others to build a unified structure of behavioral finance. Its foundation blocks include normal behavior, behavioral portfolio theory, behavioral life-cycle theory, behavioral asset pricing theory, and behavioral market efficiency.

Beyond Greed and Fear

Beyond Greed and Fear
Author: Hersh Shefrin
Publsiher: Oxford University Press on Demand
Total Pages: 368
Release: 2002
ISBN 10: 9780195161212
ISBN 13: 0195161211
Language: EN, FR, DE, ES & NL

Beyond Greed and Fear Book Review:

Why do most financial decision-making models fail to factor in basic human nature? This guide to what really influences the decision- making process applies psychological research to stock selection, financial services and corporate financial strategy, using real-world examples.

Postmodern Portfolio Theory

Postmodern Portfolio Theory
Author: James Ming Chen
Publsiher: Springer
Total Pages: 339
Release: 2016-07-26
ISBN 10: 1137544643
ISBN 13: 9781137544643
Language: EN, FR, DE, ES & NL

Postmodern Portfolio Theory Book Review:

This survey of portfolio theory, from its modern origins through more sophisticated, “postmodern” incarnations, evaluates portfolio risk according to the first four moments of any statistical distribution: mean, variance, skewness, and excess kurtosis. In pursuit of financial models that more accurately describe abnormal markets and investor psychology, this book bifurcates beta on either side of mean returns. It then evaluates this traditional risk measure according to its relative volatility and correlation components. After specifying a four-moment capital asset pricing model, this book devotes special attention to measures of market risk in global banking regulation. Despite the deficiencies of modern portfolio theory, contemporary finance continues to rest on mean-variance optimization and the two-moment capital asset pricing model. The term postmodern portfolio theory captures many of the advances in financial learning since the original articulation of modern portfolio theory. A comprehensive approach to financial risk management must address all aspects of portfolio theory, from the beautiful symmetries of modern portfolio theory to the disturbing behavioral insights and the vastly expanded mathematical arsenal of the postmodern critique. Mastery of postmodern portfolio theory’s quantitative tools and behavioral insights holds the key to the efficient frontier of risk management.

Theory of Asset Pricing

Theory of Asset Pricing
Author: George Gaetano Pennacchi
Publsiher: Prentice Hall
Total Pages: 457
Release: 2008
ISBN 10: 9780321127204
ISBN 13: 032112720X
Language: EN, FR, DE, ES & NL

Theory of Asset Pricing Book Review:

Theory of Asset Pricing unifies the central tenets and techniques of asset valuation into a single, comprehensive resource that is ideal for the first PhD course in asset pricing. By striking a balance between fundamental theories and cutting-edge research, Pennacchi offers the reader a well-rounded introduction to modern asset pricing theory that does not require a high level of mathematical complexity.

Global Stock Markets

Global Stock Markets
Author: Wolfgang Drobetz
Publsiher: Springer Science & Business Media
Total Pages: 332
Release: 2013-06-29
ISBN 10: 3663085295
ISBN 13: 9783663085294
Language: EN, FR, DE, ES & NL

Global Stock Markets Book Review:

Wolfgang Drobetz provides empirical evidence on the time variation of expected stock returns over the stages of the business cycle.

CFA Program Curriculum 2018 Level III

CFA Program Curriculum 2018 Level III
Author: CFA Institute
Publsiher: John Wiley & Sons
Total Pages: 2688
Release: 2017-08-01
ISBN 10: 1119396727
ISBN 13: 9781119396727
Language: EN, FR, DE, ES & NL

CFA Program Curriculum 2018 Level III Book Review:

Apply CFA Program concepts and skills to real-world wealth and portfolio management for the 2018 exam The same official curricula that CFA Program candidates receive with program registration is now publicly available for purchase. CFA Program Curriculum 2018 Level III, Volumes 1-6 provides complete, authoritative guidance on synthesizing the entire CFA Program Candidate Body of Knowledge (CBOK) into professional practice for the 2018 exam. This book helps you bring together the skills and concepts from Levels I and II to formulate a detailed, professional response to a variety of real-world scenarios. Coverage spans all CFA Program topics and provides a rigorous treatment of portfolio management, all organized into individual study sessions with clearly defined Learning Outcome Statements. Visual aids clarify complex concepts, and practice questions allow you to test your understanding while reinforcing major content areas. Levels I and II equipped you with foundational investment tools and complex analysis skill; now, you'll learn how to effectively synthesize that knowledge to facilitate effective portfolio management and wealth planning. This study set helps you convert your understanding into a professional body of knowledge that will benefit your clients' financial futures. Master essential portfolio management and compliance topics Synthesize your understanding into professional guidance Reinforce your grasp of complex analysis and valuation Apply ethical and professional standards in the context of real-world cases CFA Institute promotes the highest standards of ethics, education, and professional excellence among investment professionals. The CFA Program Curriculum guides you through the breadth of knowledge required to uphold these standards. The three levels of the program build on each other. Level I provides foundational knowledge and teaches the use of investment tools; Level II focuses on application of concepts and analysis, particularly in the valuation of assets; and Level III builds toward synthesis across topics with an emphasis on portfolio management.

CFA Program Curriculum 2019 Level III Volumes 1 6 Box Set

CFA Program Curriculum 2019 Level III Volumes 1 6 Box Set
Author: CFA Institute
Publsiher: John Wiley & Sons
Total Pages: 2832
Release: 2018-08-24
ISBN 10: 1119516889
ISBN 13: 9781119516880
Language: EN, FR, DE, ES & NL

CFA Program Curriculum 2019 Level III Volumes 1 6 Box Set Book Review:

Apply CFA Program concepts and skills to real-world wealth and portfolio management for the 2019 exam The same official curricula that CFA Program candidates receive with program registration is now publicly available for purchase. CFA Program Curriculum 2019 Level III, Volumes 1-6 provides complete, authoritative guidance on synthesizing the entire CFA Program Candidate Body of Knowledge (CBOK) into professional practice for the 2019 exam. This book helps you bring together the skills and concepts from Levels I and II to formulate a detailed, professional response to a variety of real-world scenarios. Coverage spans all CFA Program topics and provides a rigorous treatment of portfolio management, all organized into individual study sessions with clearly defined Learning Outcome Statements. Visual aids clarify complex concepts, and practice questions allow you to test your understanding while reinforcing major content areas. Levels I and II equipped you with foundational investment tools and complex analysis skill; now, you'll learn how to effectively synthesize that knowledge to facilitate effective portfolio management and wealth planning. This study set helps you convert your understanding into a professional body of knowledge that will benefit your clients' financial futures. Master essential portfolio management and compliance topics Synthesize your understanding into professional guidance Reinforce your grasp of complex analysis and valuation Apply ethical and professional standards in the context of real-world cases CFA Institute promotes the highest standards of ethics, education, and professional excellence among investment professionals. The CFA Program curriculum guides you through the breadth of knowledge required to uphold these standards. The three levels of the program build on each other. Level I provides foundational knowledge and teaches the use of investment tools; Level II focuses on application of concepts and analysis, particularly in the valuation of assets; and Level III builds toward synthesis across topics with an emphasis on portfolio management.

The Capital Asset Pricing Model in the 21st Century

The Capital Asset Pricing Model in the 21st Century
Author: Haim Levy
Publsiher: Cambridge University Press
Total Pages: 329
Release: 2011-10-30
ISBN 10: 1139503022
ISBN 13: 9781139503020
Language: EN, FR, DE, ES & NL

The Capital Asset Pricing Model in the 21st Century Book Review:

The Capital Asset Pricing Model (CAPM) and the mean-variance (M-V) rule, which are based on classic expected utility theory, have been heavily criticized theoretically and empirically. The advent of behavioral economics, prospect theory and other psychology-minded approaches in finance challenges the rational investor model from which CAPM and M-V derive. Haim Levy argues that the tension between the classic financial models and behavioral economics approaches is more apparent than real. This book aims to relax the tension between the two paradigms. Specifically, Professor Levy shows that although behavioral economics contradicts aspects of expected utility theory, CAPM and M-V are intact in both expected utility theory and cumulative prospect theory frameworks. There is furthermore no evidence to reject CAPM empirically when ex-ante parameters are employed. Professionals may thus comfortably teach and use CAPM and behavioral economics or cumulative prospect theory as coexisting paradigms.

CFA Program Curriculum 2020 Level III Volumes 1 6

CFA Program Curriculum 2020 Level III  Volumes 1   6
Author: CFA Institute
Publsiher: John Wiley & Sons
Total Pages: 329
Release: 2019-08-09
ISBN 10: 1119593646
ISBN 13: 9781119593645
Language: EN, FR, DE, ES & NL

CFA Program Curriculum 2020 Level III Volumes 1 6 Book Review:

Apply CFA Program concepts and skills to real-world wealth and portfolio management for the 2019 exam The same official curricula that CFA Program candidates receive with program registration is now publicly available for purchase. CFA Program Curriculum 2020 Level III, Volumes 1-6 provides complete, authoritative guidance on synthesizing the entire CFA Program Candidate Body of Knowledge (CBOK) into professional practice for the 2020 exam. This book helps you bring together the skills and concepts from Levels I and II to formulate a detailed, professional response to a variety of real-world scenarios. Coverage spans all CFA Program topics and provides a rigorous treatment of portfolio management, all organized into individual study sessions with clearly defined Learning Outcome Statements. Visual aids clarify complex concepts, and practice questions allow you to test your understanding while reinforcing major content areas. Levels I and II equipped you with foundational investment tools and complex analysis skill; now, you'll learn how to effectively synthesize that knowledge to facilitate effective portfolio management and wealth planning. This study set helps you convert your understanding into a professional body of knowledge that will benefit your clients' financial futures. Master essential portfolio management and compliance topics Synthesize your understanding into professional guidance Reinforce your grasp of complex analysis and valuation Apply ethical and professional standards in the context of real-world cases CFA Institute promotes the highest standards of ethics, education, and professional excellence among investment professionals. The CFA Program curriculum guides you through the breadth of knowledge required to uphold these standards. The three levels of the program build on each other. Level I provides foundational knowledge and teaches the use of investment tools; Level II focuses on application of concepts and analysis, particularly in the valuation of assets; and Level III builds toward synthesis across topics with an emphasis on portfolio management.

Risk Finance and Asset Pricing

Risk Finance and Asset Pricing
Author: Charles S. Tapiero
Publsiher: John Wiley & Sons
Total Pages: 456
Release: 2010-09-24
ISBN 10: 9780470892381
ISBN 13: 0470892382
Language: EN, FR, DE, ES & NL

Risk Finance and Asset Pricing Book Review:

A comprehensive guide to financial engineering that stresses real-world applications Financial engineering expert Charles S. Tapiero has his finger on the pulse of shifts coming to financial engineering and its applications. With an eye toward the future, he has crafted a comprehensive and accessible book for practitioners and students of Financial Engineering that emphasizes an intuitive approach to financial and quantitative foundations in financial and risk engineering. The book covers the theory from a practitioner perspective and applies it to a variety of real-world problems. Examines the cornerstone of the explosive growth in markets worldwide Presents important financial engineering techniques to price, hedge, and manage risks in general Author heads the largest financial engineering program in the world Author Charles Tapiero wrote the seminal work Risk and Financial Management.