One of most significant empirical findings in the behavioral finance literature is that investor sentiment affects asset prices. However, the mechanism by which sentiment affects asset prices is not well understood. Individuals are widely believed to be more influenced by sentiment than other...

In his 2008 letter to Berkshire shareholders, Warren Buffett presented a critique of the Black-Scholes option pricing model as a tool for valuing long-dated options, including options that Berkshire had written. Given Mr. Buffett's track record, it worth investigating precisely why he thinks...

"Sales handles: - CONTENT: Bradford Cornell has been a professor for over 3 decades, with a knack for making complex topics simple to understand. His writing style is detailed but highly accessible. The strength and clarity of Cornell's instruction is a value-add, making this book accessible to...

Cover -- Title Page -- Copyright -- Contents -- Preface -- 1 Returns -- Stocks, Bonds, and Bills -- Return Mathematics -- Volatility -- Average Returns -- Using Returns to Test Investment Theories -- Returns and Stock Market History -- Conceptual Foundation 1 -- 2 The Economic Structure of...