Complex Evolutionary Systems in Behavioral Finance

Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting

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 ...

Optimization in Uncertain and Complex Dynamic Environments with Evolutionary Methods

In the real world, many of the optimization issues are dynamic, uncertain, and complex in which the objective function or constraints can be changed over time. Consequently, the optimum of these issues is changed nonlinearly. Therefore, the optimization algorithms not only should search the global optimum value in the space but also should follow the path of optimal change in dynamic environmen...

Complex Systems and Evolutionary Engineering

This document is for informational purposes only. It is not directing nor dictating potential solutions to the AOC WS LSI effort. Rather its purpose is to provide additional information in support of potential future Government interaction with industry.

The End of Behavioral Finance

n 1985, Werner De Bondt and I published an article that asked the question: “Does the stock market overreact?” The article was controversial because it gave evidence to support the hypothesis that a cognitive bias (investor overreaction to a long series of bad news) could produce predictable mispricing of stocks traded on the NYSE. Although this idea was hardly shocking to practitioners, the co...

New Insights into Behavioral Finance