Behavioral Finance: Strategies for Informed Decision-Making (Business, Technology and Finance) - Hardcover

 
9798895309568: Behavioral Finance: Strategies for Informed Decision-Making (Business, Technology and Finance)

Synopsis

Many people mistakenly believe that logic and reason rule the financial markets; in reality, it is a complex network of models, data, and trading procedures. The premise upon which conventional financial theory has rested for a long time is that investors are rational beings who, when presented with all relevant information, make the best possible decision to maximize their profits. However, financial crises, stock market variations, and investment patterns in the real-world show that human behavior frequently goes against these reasonable assumptions. This insight has resulted in the emergence of the fascinating topic of behavioral finance, which investigates the psychological and emotional elements that play a role in the decision-making process regarding financial matters. Behavioral Finance: Strategies for Informed Decision-Making presents a comprehensive exploration of the core principles, theories and practical applications of behavioral finance. Contributions from esteemed scholars and practitioners in the field of behavioral finance provides a well-rounded perspective on the subject, making it a valuable resource for academicians, professionals and students. Empirical studies and practical applications of the behavioral finance principles become more prominent as the reader progresses through the book. The cases discussed demonstrate how bubbles and price volatility are caused by investors sentiments, herd behavior and market inefficiencies.

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