Behavioral Finance

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Just Released: CFA Institute Magazine (May/June 2013)

CFA Institute Magazine (May/June 2013)

The cost of financial illiteracy is high. From distorted markets to mangled individual retirement plans, some of the consequences have become all too familiar for investment professionals. Can efforts to raise financial literacy change behaviors and promote better outcomes? The May/June issue of “CFA Institute Magazine” examines the scope and scale of financial illiteracy and initiatives designed to address the problem, including efforts by local CFA Institute member societies. Read more

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Book Review: The Hour between Dog and Wolf: Risk Taking, Gut Feelings, and the Biology of Boom and Bust

The Hour between Dog and Wolf: Risk Taking, Gut Feelings, and the Biology of Boom and Bust

John Coates, senior research fellow in neuroscience and finance at the University of Cambridge, offers a number of fascinating lessons from a booming new field, the biology of risk, revealing how risk taking and stress transform our body chemistry and drive us to irrational exuberance or pessimism. When such chemical surges overwhelm traders and investors, they tend to suffer either euphoric overconfidence or extreme timidity. Read more

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