Compared to conventional mutual funds, socially responsible mutual funds outperform during periods of market crisis. This dampening of downside risk comes at the cost of under performing during non-crisis periods. Investors with Prospect Theory utility functions would value the skewness of these...

"Why do people's financial and economic preferences vary so widely? 'Nurture' variables such as socioeconomic factors partially explain these differences, but scientists have been discovering that 'nature' also plays an important role. This is the first book to bring together these scientific...

Cover -- Behavioral Finance -- Copyright -- Contents -- Preface -- Who Are the Authors? -- Why Did We Write This Book? -- What Is the Book About? -- Whom Do We Want to Thank? -- 1. Foundations and Psychological Concepts -- What Is Behavioral Finance? -- Why Is Behavioral Finance Important to...

Psychology and finance -- Overconfidence -- Pride and regret -- Risk perceptions -- Decision frames -- Mental accounting -- Forming portfolios -- Representativeness and familiarity -- Social interaction and investing -- Emotion and investment decisions -- Self-control and decision making --...