Finance and the Behavioral Prospect - Risk, Exuberance, and Abnormal Markets (Paperback, Softcover reprint of the original 1st ed. 2016)

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.

General

Imprint:	Springer International Publishing AG
Country of origin:	Switzerland
Series:	Quantitative Perspectives on Behavioral Economics and Finance
Release date:	July 2018
First published:	2016
Authors:	James Ming Chen
Dimensions:	210 x 148 x 19mm (L x W x T)
Format:	Paperback
Pages:	343
Edition:	Softcover reprint of the original 1st ed. 2016
ISBN-13:	978-3-319-81351-6
Categories:	Books > Business & Economics > Economics > General Books > Business & Economics > Finance & accounting > Finance > General Books > Business & Economics > Business & management > Management & management techniques > General Books > Money & Finance > General
LSN:	3-319-81351-X
Barcode:	9783319813516

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