A Behavioral Approach to Asset Pricing


Book Description

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. 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




Lecture Notes In Behavioral Finance


Book Description

This volume presents lecture notes for a course in behavioral finance, most suitable for MBA students, but also adaptable for a PhD class. These lecture notes are based on the author's experience in teaching behavioral finance classes at Bocconi University (at the PhD level) and at the Academic College of Tel Aviv-Yaffo (MBA).Written in a way that is user-friendly for both teachers and students, this book is the first of its kind and consolidates all the material necessary for a course on behavioral finance, balancing psychological concepts with financial applications. Material formerly presented only in academic papers has been transformed to a format more suitable for students, while the most important issues have been highlighted in boxes that can form the basis of a lecturer's teaching slides.In addition to corralling all the currently scattered materials into one book, a neat logical order is introduced to the subject matter. Behavioral finance is put in a context relative to the other disciplines of finance, its history is outlined and the way it evolved — from an eclectic collection of counter examples to market efficiency into a bona fide discipline of finance — is reviewed and explained.The 17 topic-based chapters in this book are each intended for a 90-minute lecture. The first five chapters (Part 1) provide the psychological and financial foundations of behavioral finance. The next 12 chapters (Part 2) are applications: Chapters 6-13 cover the essentials while Chapters 14-17 are special, elective topics.




Psychological Perspectives on Financial Decision Making


Book Description

This book reviews the latest research from psychology, neuroscience, and behavioral economics evaluating how people make financial choices in real-life circumstances. The volume is divided into three sections investigating financial decision making at the level of the brain, the level of an individual decision maker, and the level of the society, concluding with a discussion of the implications for further research. Among the topics discussed: Neural and hormonal bases of financial decision making Personality, cognitive abilities, emotions, and financial decisions Aging and financial decision making Coping methods for making financial choices under uncertainty Stock market crashes and market bubbles Psychological perspectives on borrowing, paying taxes, gambling, and charitable giving Psychological Perspectives on Financial Decision Making is a useful reference for researchers both in and outside of psychology, including decision-making experts, consumer psychologists, and behavioral economists.




Bounded Rationality and Behavioural Economics


Book Description

Economics Nobel Laureate Herbert Simon developed the concept of bounded rationality in the 1950s. This asserts that the cognitive abilities of human decision-makers are not always sufficient to find optimal solutions to complex real-life problems, leading decision-makers to find satisfactory, sub-optimal outcomes. This was a foundational component of the development of Behavioural Economics but in recent years the two fields have diverged, each with its own literature, its own approach and its own proponents. Behavioural Economics explores the areas of commonality between Economics and Psychology, in terms of its focus and its approach, whereas the bounded rationality literature largely analyses the implications of sub-optimal decision‐making through the mathematically sophisticated methodology of mainstream Economics. This book examines the nature and consequences of this divergence and questions whether this is a case of beneficial specialisation or whether it is unhelpful, potentially stunting the development of some aspects of Economics. It has been suggested that the major deficiency of Behavioural Economics is that it has failed to produce a single, widely applicable alternative to constrained optimisation. This book evaluates the extent to which this is the true and, if it is, the extent to which it is a product of the divergence between the two literatures. It also seeks to identify commonalities between the two subjects and suggests avenues of research in Economics that would benefit from a re-fusion of these two fields.




Financially Fearless


Book Description

Finally, a financial plan that lets you be YOU, only richer. It’s time to throw away all your old notions of what financial advice should look like. Because if you’re looking for a book to put you on an austerity savings plan that has you giving up vacations and lattes, you’re out of luck. But if you’re looking to get your finances in rock-hard shape--in less time than it takes to finish a workout--then Alexa von Tobel, Founder and CEO of LearnVest, has your back. How? Through the LearnVest Program. First, you’ll take stock of where you stand today. Then, you’ll create your customized 50/20/30 plan. 50/20/30 simply refers to the percentage breakdown of how to spend your take-home pay each month. The 50 gets the essentials out of the way so you don't have to stress about them. The 20 sets your foundation for the future, then the 30 is left to spend on the things that bring happiness to your life. By the time you’re finished reading this book, you’ll walk away with a financial game plan tailored to your priorities, your hopes and dreams, and your lifestyle. And, because von Tobel and the team at LearnVest are experts at financial planning in the online era, you’ll also learn how to integrate your financial plan into your mobile, social, digital life. Like your own personal financial planner between two covers, this book will set you up for a secure, worry-free money future, without having to give up things you love. So toss those old-school financial guides out the window, and get ready to start living your richest life.




An Introduction to the Science of Deception and Lie Detection


Book Description

This accessible book provides a foundational understanding of the science of deception and lie detection. Focusing on core issues for the field, it discusses classic and current psychological research into lying as well as theoretical approaches to understanding human lie detection. This book explores engaging questions around how people lie, how people make decisions about believing others, and how we can detect deception. Each chapter is clearly structured to support students of all levels by summarising content, presenting key research, and systematically evaluating findings. Chapters explore topics including some of the most promising current lie detection techniques, how and why people lie, how lying develops in children, and whether unconscious thinking can boost lie detection accuracy. Providing an overview of key issues in deception, this book will be of great interest to students and lecturers in the field of deception and lie detection, as well as anyone generally interested in this fascinating field of research.




Behavioral Finance: Where Do Investors' Biases Come From?


Book Description

This unique volume presents new original research exploring factors that lead to investors behavioral biases. It discusses how features such as professionalism, sophistication, gender, media, and culture influence investors' decision-making in general, and in particular, how they generate (or limit) behavioral and cognitive biases. The effects of these factors on capital markets are also discussed. The book is based on the discussions and presentations at the First Israel Behavioral Finance Conference, which took place in Tel Aviv in May 2015. It examines in greater detail some of the key issues discussed at the conference.This is an innovative book in behavioral finance: it is the first to present an extensive collection of papers which discuss a comprehensive array of factors that influence or define investor character and analyzes these factors' effects on financial markets. The book is useful for readers interested in understanding the factors that influence investors' profiles and thus their behavioral biases. The book will be of great interest to researchers and students seeking a reference book which contains timely research on these areas of behavioral finance.




Mindful Project Management


Book Description

Central to the issue of improving project performance is the application of deterministic, probabilistic processes, and techniques to reduce human error. To that end, we as project managers often endeavour to implement and follow a project management methodology in the belief that we can reduce the scope for emerging ambiguous requirements, ill-matched resource needs and availability, contractual and funding constraints, and other unwanted uncertainties. However, such ‘self-evidently correct’ processes are not without their limitations. The management of uncertainty needs to be viewed not from a procedural, ‘stand-alone’ perspective but from a behavioural, people-driven perspective – that is, Mindfulness. Mindfulness is a project-wide human capability to anticipate key events from emerging trends, constantly adapt to change, and rapidly bounce back from adversity. Resilient project managers are forward-thinking and able to foresee relevant scenarios that are likely to occur and which may have damaging effects on performance. We strive to be prepared for the best but also for the worst, and learning is nurtured and encouraged. We believe that with purpose, whatever uncertainty hits us, and regardless of the damage caused, we can prevent a crisis from happening in the first place. When a crisis occurs, we can recover and bounce back from shocks, quickly restoring ‘normal’ management. This book goes beyond commonly accepted standards in project management and looks past mere compliance to determinism and probabilistic approaches to managing uncertainty. Relying on the power of mindful thinking, it identifies an art to manage uncertainty.




Biomedical and Computational Biology


Book Description

This book constitutes the revised selected proceedings of Second International Symposium on Biomedical and Computational Biology, BECB 2022, held as a virtual event in August 2022. The 58 full papers included in this book were carefully reviewed and selected from 135 submissions. The papers are organized in topical sections as follows: The Charge Transfer Network Model for Arbitrary Proteins Complexes; A Self-Supervised 3D/2D Registration Method for Incomplete DSA Vessels; The Potential Role of RNA "Writer" TRMT61B in the Immune Regulation of Breast Cancer; Extraction, Composition Analysis and Blood Lipid Lowering Activity of Rana chensinensis Ovum Oil.




Making Shift Happen


Book Description

Nautilus Book Award Winner: An “engagingly written” behavioral science-based guide to tackling our urgent environmental problems (Robert B. Cialdini, author of Influence: The Psychology of Persuasion). To create a sustainable future and achieve positive, durable change, we must design solutions based directly on how people think, make decisions, and act. From hotels that save water (and money) using simple signage to energy suppliers that boost participation in renewable energy programs through mere enrollment-form tweaks, it’s clear that shifting the behavior of millions for the better is possible. Based on decades of research into what drives behavior change, Making Shift Happen provides a suite of powerful tools to transform the world. It features A-to-Z guidance on how to design a behavior change initiative—from choosing the right audience and uncovering what drives their behavior to designing, prototyping, testing, and implementation. Clear instructions and real-world examples empower you to apply hundreds of behavioral science solutions including: Using social norms to spread positive environmental behaviors Selecting and testing stories, metaphors, and values to frame information for each audience Catalyzing action by aligning your initiative with your audience’s personal and social motivators Breaking bad habits and building positive ones Capturing your audience’s attention and reducing barriers to action Connecting people with nature and building empathy for the environment and its inhabitants Making Shift Happen is a must-have guide for practitioners in non-profits, governments, and businesses looking to design successful campaigns and initiatives that shift behaviors and mindsets toward positive environmental outcomes and a better future for all. “Completely fascinating—we’ve learned a lot about the ways minds work in the last decades and that may help us figure out how to appeal to our better angels more effectively than in the past. Rest assured that people who want to sell us junk are paying attention to these insights—the rest of us better do so too!” —Bill McKibben, author of The End of Nature