Behavioral finance applies systematic analysis to ideas that have long floated around the world of trading and investing. Yet it is important to realize that we are still at a very early stage of research into this discipline and have much to learn. That is why Edwin Burton has written Behavioral Finance: Understanding the Social, Cognitive, and Economic Debates.
Engaging and informative, this timely guide contains valuable insights into various issues surrounding behavioral finance. Topics addressed include noise trader theory and models, research into psychological behavior pioneered by Daniel Kahneman and Amos Tversky, and serial correlation patterns in stock price data. Along the way, Burton shares his own views on behavioral finance in order to shed some much-needed light on the subject.
- Discusses the Efficient Market Hypothesis (EMH) and its history, and presents the background of the emergence of behavioral finance
- Examines Shleifer's model of noise trading and explores other literature on the topic of noise trading
- Covers issues associated with anomalies and details serial correlation from the perspective of experts such as DeBondt and Thaler
- A companion Website contains supplementary material that allows you to learn in a hands-on fashion long after closing the book
In order to achieve better investment results, we must first overcome our behavioral finance biases. This book will put you in a better position to do so.
Keywords: Business & Finance, edwin t. burton, edwin burton, behavioral finance book, behavioral finance, behavioralist, guide to behavioral finance, noise trader theory, efficient markets, efficient markets hypothesis, serial correlation patterns, serial correlation, serial correlation in stock returns, limits to arbitrage, no arbitrage, anomalies, noise trader equilibrium models, critique of rationality, mean reversion, over and under-reaction hypotheses, serial dependence in returns, anomaly biases, calendar effect, shleifer model of noise trading