close
Inefficient Markets | Zookal Textbooks | Zookal Textbooks
  • Author(s) Andrei Shleifer
  • SubtitleAn Introduction to Behavioural Finance
  • Edition
  • Published1st June 2000
  • PublisherOxford University Press UK
  • ISBN9780198292289

An Introduction to Behavioural Finance

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of
investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against
arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks
included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance,
the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.

Inefficient Markets

Format
Print on Demand

Leaves 10-15 days after printing

$204.63 $216.00 Save $11.37
or 4 payments of $51.15 with Zookal accepts Afterpay
Add Zookal Study FREE trial and save a further 10% 

NEW PRICE

$184.17 + free shipping

(10% off - save $20.46)

Zookal Study Free trial

14-day FREE trial. $14.95/mo after. Cancel anytime.

*Discount will apply at checkout.

 See terms and conditions

You will get a further 10% off for this item ($184.17 after discount) because you have added Zookal Study Premium Free Trial to your bag.

For this discount to apply, you will need to complete checkout with the Zookal Study Premium Free Trial in your bag.

-
+
  • Author(s) Andrei Shleifer
  • SubtitleAn Introduction to Behavioural Finance
  • Edition
  • Published1st June 2000
  • PublisherOxford University Press UK
  • ISBN9780198292289

An Introduction to Behavioural Finance

The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of
investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against
arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks
included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance,
the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.
translation missing: en.general.search.loading