Behavioral Finance

25-01-12 web.xrh 0 comment

Behavioral Finance


Over the past fifty years, the efficient market theory constitutes one of the most important issues of portfolio management. The theory relies on the notion that investors behave in a rational, predictable and an unbiased manner. Behavioral finance challenges this notion. It uses cognitive psychology and decision theory to explain anomalies that we observe in the financial markets. It discusses the existence of typical psychological biases made by market participants and examines the impacts of these biases in financial markets.

•    Introduction to behavioral finance
•    Efficient Capital Markets: Theory and evidence
•    Limits to arbitrage: Theory and evidence
•    Prospect theory
•    The psychology of financial markets
•    The psychology of investor behavior
•    Beliefs, biases and heuristics
•    Behavioral finance market strategies