logo
Supporting your high street Find out how »
Basket Image

Basket

Finance and the Behavioral Prospect : Risk, Exuberance, and Abnormal Markets, Hardback Book

Finance and the Behavioral Prospect : Risk, Exuberance, and Abnormal Markets Hardback

Part of the Quantitative Perspectives on Behavioral Economics and Finance series

Description

This book explains how investor behavior, from mental accounting to the combustible interplay of hope and fear, affects financial economics.

The transformation of portfolio theory begins with the identification of anomalies.

Gaps in perception and behavioral departures from rationality spur momentum, irrational exuberance, and speculative bubbles.

Behavioral accounting undermines the rational premises of mathematical finance.

Assets and portfolios are imbued with "affect." Positive and negative emotions warp investment decisions.

Whether hedging against intertemporal changes in their ability to bear risk or climbing a psychological hierarchy of needs, investors arrange their portfolios and financial affairs according to emotions and perceptions.

Risk aversion and life-cycle theories of consumption provide possible solutions to the equity premium puzzle, an iconic financial mystery.

Prospect theory has questioned the cogency of the efficient capital markets hypothesis.

Behavioral portfolio theory arises from a psychological account of security, potential, and aspiration.

Information

  • Format: Hardback
  • Pages: 343 pages, 12 Illustrations, color; 2 Illustrations, black and white; XII, 343 p. 14 illus., 12 illu
  • Publisher: Springer International Publishing AG
  • Publication Date:
  • Category: Risk assessment
  • ISBN: 9783319327105

Other Formats

£109.99

£95.35

 
Free Home Delivery

on all orders

 
Pick up orders

from local bookshops

Also in the Quantitative Perspectives on Behavioral Economics and Finance series   |  View all