Behavioral Finance: The Second Generation

Statman, Meir

ISBN 10: 1944960856 / ISBN 13: 9781944960858

Published by CFA Institute Research Foundation, 2019

About this Item

Gently read. May have name of previous ownership, or ex-library edition. Binding tight; spine straight and smooth, with no creasing; covers clean and crisp. Minimal signs of handling or shelving. 100% GUARANTEE! Shipped with delivery confirmation, if you're not satisfied with purchase please return item for full refund. Ships USPS Media Mail.

Seller Inventory # OTV.1944960856.VG

Bibliographic Details

• Title: Behavioral Finance: The Second Generation
• Publisher: CFA Institute Research Foundation
• Publication Date: 2019
• Language: English
• ISBN 10: 1944960856
• ISBN 13: 9781944960858
• Binding: Soft cover
• Condition: very_good

About this title

Synopsis

Behavioral finance presented in this book is the second-generation of behavioral finance. The first generation, starting in the early 1980s, largely accepted standard finance’s notion of people’s wants as “rational” wants—restricted to the utilitarian benefits of high returns and low risk. That first generation commonly described people as “irrational”—succumbing to cognitive and emotional errors and misled on their way to their rational wants. The second generation describes people as normal. It begins by acknowledging the full range of people’s normal wants and their benefits—utilitarian, expressive, and emotional—distinguishes normal wants from errors, and offers guidance on using shortcuts and avoiding errors on the way to satisfying normal wants. People’s normal wants include financial security, nurturing children and families, gaining high social status, and staying true to values. People’s normal wants, even more than their cognitive and emotional shortcuts and errors, underlie answers to important questions of finance, including saving and spending, portfolio construction, asset pricing, and market efficiency.