"synopsis" may belong to another edition of this title.
Traditional finance has focused on developing the tools that investors use to optimize expected return and risk. Understanding the motivations behind this behavior is extremely important when applying these financial tools. This is the first text of its kind to delve into the fascinating and important subject of the psychology affecting investments!
Includes coverage of:
For more information on this and other Prentice Hall Finance titles, please visit our website at www.prenhall.com/finance
An old Wall Street adage states that two factors move the market: fear and greed. Although true, this characterization is far too simplistic. The human mind is very sophisticated, and human emotions are very complex. The emotions of fear and greed just don't adequately describe the psychology that affects people. This book is one of the first texts to delve into this fascinating and important subject.
Few other texts provide this information because traditional finance has focused on developing the tools that investors use to optimize expected return and risk. This endeavor has been fruitful, yielding tools such as asset pricing models, portfolio theories, and option pricing. Although investors should use these tools in their investment decision making, they typically do not. We tend not to use these tools because psychology affects our decisions more than financial theory does.
Unfortunately, your psychological biases inhibit your ability to make good investment decisions. By learning about your psychological biases, you can overcome them and increase your wealth. You will notice that most of the chapters are structured in a similar way. I first describe the psychological bias and illustrate it with everyday behavior (such as driving a car). The effect of the bias on investment decisions is then described. Lastly, I use academic studies to show that investors really do have the problem.
This material does not replace the investment texts of traditional finance. Understanding psychological biases complements the traditional finance tools. Indeed, after reading this book you should be convinced that traditional tools are valuable.
"About this title" may belong to another edition of this title.
Shipping:
US$ 3.50
Within U.S.A.
Book Description Paperback. Condition: new. New. Seller Inventory # Wizard0136117031
Book Description Paperback. Condition: new. Buy for Great customer experience. Seller Inventory # GoldenDragon0136117031
Book Description Paperback. Condition: new. New. Fast Shipping and good customer service. Seller Inventory # Holz_New_0136117031
Book Description Condition: new. Seller Inventory # newMercantile_0136117031
Book Description Paperback. Condition: new. Prompt service guaranteed. Seller Inventory # Clean0136117031
Book Description Paperback. Condition: new. New Copy. Customer Service Guaranteed. Seller Inventory # think0136117031
Book Description Paperback. Condition: New. Seller Inventory # Abebooks44034
Book Description Condition: new. Seller Inventory # FrontCover0136117031
Book Description Condition: New. Buy with confidence! Book is in new, never-used condition. Seller Inventory # bk0136117031xvz189zvxnew
Book Description Paperback. Condition: New. Brand New!. Seller Inventory # VIB0136117031