Little has been done to improve the overall state of investment management on the basis of our growing knowledge of behavioral finance. This book is an attempt to address this void in a unified investment management framework based on portfolio optimization with a behavioral component that uses advances in utility theory.
Burgeoning wealth in the region has created new challenges for Asian families contemplating succession plans. Two Asia Pacific Investment Conference speakers, Barbara Hauser and Christian Stewart, will examine these issues in detail.
Unlike many behavioral finance pieces which simply contain behavioral admonitions, “Eight Lessons” actually contains prescriptions for overcoming common errors of judgment.
Physical limitations in humans seem to limit our ability to make effective group decisions when the number of the group exceeds seven members. This has important implications for boards of directors, investment committees, and transnational economic organizations, such as the eurozone.
Effective financial decision making relies on a proper assessment of the truthfulness of facts. Yet, most people, even professionals, are terrible at spotting lies. Why?
Emotions can influence financial decisions in surprisingly predictable ways. We tend to be overconfident in our own knowledge and decisions, we extrapolate recent trends while dismissing the past, we refuse to accept losses gracefully by hanging on to our… READ MORE ›
A few weeks ago, Daniel Kahneman, the Nobel prize-winning psychologist and pioneer of behavioral economics, wrote a fascinating article in The New York Times Magazine that examines the illusion of skill as it… READ MORE ›
Do your investment decisions involve emotions?
You may be inclined to think not, but according to Professor David Tuckett, a psychoanalyst at University College London, emotions are part and parcel of investment decisions.
A researcher in emotional finance,… READ MORE ›
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