Investor Psychology and Asset Pricing
The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both "risk" and "misvaluation". This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital market evidence bearing on the importance of investor psychology for security prices, and reviews recent models. Copyright The American Finance Association 2001.
Year of publication: |
2001
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Authors: | Hirshleifer, David |
Published in: |
Journal of Finance. - American Finance Association - AFA, ISSN 1540-6261. - Vol. 56.2001, 4, p. 1533-1597
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Publisher: |
American Finance Association - AFA |
Saved in:
freely available
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