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Introduction to Behavioral Finance

Introduction to Behavioral Finance

Paperback

General Law

Currently unavailable to order

ISBN10: 620613895X
ISBN13: 9786206138952
Publisher: Our Knowledge Pub
Published: Jun 27 2023
Pages: 92
Weight: 0.32
Height: 0.22 Width: 6.00 Depth: 9.00
Language: English
The classical financial paradigm, based entirely on the efficiency of financial markets and the rationality of investors, is the cornerstone of economic theory. Its importance in revolutionizing financial strategy is well established. The main valuation models - CAPM, APT, Modigliani-Miller and Black-Scholes-Merton - all owe their existence to this paradigm. It therefore seems understandable that leitmotifs relating to the efficiency of financial markets and the rationality of investors have always been the most prevalent in scientific financial circles. However, the hegemony of this paradigm has been called into question by certain episodes of financial crisis, generated in particular by bubbles. The crises of the last three decades have led to the emergence of a new approach to the analysis of financial phenomena: Behavioral Finance.

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General Law