This paper focuses on egocentric biases in financial decisions. Subjects first designa portfolio, whereby each combination of assets yields the same expected returnand variance of returns. They are then confronted with two alternative portfolios;the average portfolio and the portfolio of one’s...

This paper provides evidence on the hypothesis that many behavioral finance patterns are sodeeply rooted in human behavior that they are difficult to overcome by learning. We test thison a target group which has undoubtedly very strong incentives to learn efficient behavior,i.e. fund managers....

Portfoliomanagement ist ein Bereich innerhalb der Wirtschaftswissenschaft; der traditionsgemäß nicht nur Wissenschafter interessiert und für den es deshalb umfangreiche Literatur für verschiedene Leserkreise gibt. Es ist deshalb wichtig, dass niveauvolle wissenschaftliche Erkenntnisse nicht...

Our questionnaire survey finds that most fund managers rely on the strategies ofbuy-&-hold, momentum and contrarian trading. These strategies are typically appliedmutually. Their use is rooted in the attributes and beliefs of the respective fund managers:buy-&-hold traders behave fundamentally...

In dem vorliegenden Beitrag wird erörtert, wie beschränkte Rationalität auf verschiedene Phasen der Gründungsfinanzierung einwirken kann. Dabei wird konkret die Venture Capital-Finanzierung als wohl bedeutendste Form einer Gründungsfinanzierung der Untersuchung zugrunde gelegt. Für diese...

Since the equity premium as well as the risk-free rate puzzle question the concepts centralto financial and economic modeling, we apply behavioral decision theory to asset pricing in view ofsolving these puzzles. U.S. stock market data for the period 1960-2003 and German stock marketdata for the...

We examine a static one-risk-free-one-risky asset portfolio choice when the investor's wellbeing is affected by the anticipatory feelings associated to potential capital gains and losses. These feelings can be manipulated by the choice of subjective beliefs on the distribution of returns....

We develop a simple model of the exchange rate in which agents optimize their portfolio and use different forecasting rules. They check the profitability of these rules ex post and select the more profitable one. This model produces two kinds of equilibria, a fundamental and a bubble one. In a...