Behavioral biases and investor performance1
نویسندگان
چکیده
منابع مشابه
Behavioral biases and investor performance
Research indicates that individual investors trade excessively and underperform the market indices, Barber and Odean (2000). The purpose of this paper is to help explain which behavioral biases, if any, can explain this result using a simulation approach. Results indicate that putting too much weight on the current environment, anchoring, is the largest factor in explaining individual investor ...
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Stock market is affected by news and information. If the stock market is not efficient, the reaction of stock price to news and information will place the stock market in overreaction and under-reaction states. Many models have been already presented by using different tools and techniques to forecast the stock market behavior. In this study, the reaction of stock price in the stock market was ...
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Bloomfield and Hales (2002) (BH) reports results from experiments that support the existence of regime-shifting beliefs of the type theorized by Barberis, Shleifer, and Vishny (1998) (BSV). We revisit and extend the BH experiments to provide new evidence on BSV and on a competing model by Rabin (2002). We first argue that the BH experiments cannot provide a definitive test of BSV because the se...
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We investigate the way investors react to prior gains/losses. We use a new and unique dataset with detailed information on investors’ various components of wealth, income, demographic characteristics and portfolio holdings identified at the stock level. We test the theory of loss aversion against the alternative provided by standard utility theory and the house-money effect. We show that, on a ...
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ژورنال
عنوان ژورنال: Algorithmic Finance
سال: 2011
ISSN: 2157-6203,2158-5571
DOI: 10.3233/af-2011-005