Behavioral Finance
studies how the psychology of investors or managers affects financial
decisions and markets. Behavioral finance has grown over the last few
decades to become central to finance.
Behavioral finance includes such topics as:
- Empirical studies that demonstrate significant deviations from classical theories.
- Models of how psychology affects trading and prices
- Forecasting based on these methods.
- Studies of experimental asset markets and use of models to forecast experiments.
A strand of behavioral finance has been dubbed Quantitative
Behavioral Finance, which uses mathematical and statistical methodology
to understand behavioral biases in conjunction with valuation. Some of
this endeavor has been led by
Gunduz Caginalp (Professor of Mathematics and Editor of
Journal of Behavioral Finance during 2001-2004) and collaborators including
Vernon Smith
(2002 Nobel Laureate in Economics), David Porter, Don Balenovich,
Vladimira Ilieva, Ahmet Duran). Studies by Jeff Madura, Ray Sturm and
others have demonstrated significant behavioral effects in stocks and
exchange traded funds. Among other topics, quantitative behavioral
finance studies behavioral effects together with the non-classical
assumption of the finiteness of assets.
ليست هناك تعليقات:
إرسال تعليق