7 the behavioral finance perspective

behavioral vs traditional perspectives

decision making

perspectives on market behavior and portfolio

traditional finance perspectives
on individual behavior

utility theory and bayes' formula

rational economic man

perfect rationality self-interest and information

risk aversion

behavioral finance perspectives
on individual behavior

challenges to rational economic man

utility maximization and counterpoint

attitudes toward risk

neuro-economics

decision theory

bounded rationality

prospect theory

the evaluation phase

traditional perspectives on market behavior

traditional perspectives on portfolio construction

alternative models of market behavior
and portfolio construction

a behavioral approach to consumption and savings

a behavioral approach to asset pricing

behavioral portfolio theory

adaptive markets hypothesis

review of the efficient market hypothesis

studies in support of the EMH

studies challenging the EMH: anomalies

support for the weak form of the EMH

support for the semi-strong form of the EMH

fundamental anomalies

technical anomalies

calendar anomalies

anomalies: conclusion

limits to arbitrage