A Behavioral Approach to Asset Pricing || A Simple Asset Pricing Model with Heterogeneous Beliefs

✍ Scribed by Shefrin, Hersh

• Book ID: 120525500
• Publisher: Elsevier
• Year: 2008
• Tongue: English
• Weight: 295 KB
• Edition: 2
• Category: Article
• ISBN: 0123743567
• DOI: 10.1016/B978-012374356-5.50011-5

✦ Synopsis

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. A companion website contains these examples worked out as Excel spreadsheets so that readers can input their own data to test the results.

* 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
* A companion website contains a series of examples worked out as Excel spreadsheets so that readers can input their own data to test the results