CEIS-Tor Vergata is pleased to inform you that, on Friday January 20th, 2012 at 12.00 pm, prof. Meir Statman (Santa Clara University) will present a paper on “What is Behavioral Finance?” The Seminar will be held at the Faculty of Economics, University of Rome "Tor Vergata", B-building, 1° floor, room B Please, go to www.ceistorvergata.it for the complete list of seminars and events at CEIS. How to reach us: http://web.uniroma2.it/mobilita/index.html http://www.economia.uniroma2.it/area.asp?a=867 ABSTRACT Standard finance has four foundation blocks: (1) investors are rational; (2) markets are efficient; (3) investors should design their portfolios according to the rules of mean-variance portfolio theory and, in reality, do so; and (4) expected returns are a function of risk and risk alone. Behavioral finance offers an alternative block for each of the foundation blocks of standard finance. According to behavioral finance, investors are “normal,” not rational. Markets are not efficient, even if they are difficult to beat. Investors design portfolios according to the rules of behavioral portfolio theory, not mean-variance portfolio theory. And expected returns follow behavioral asset pricing theory, in which risk is not measured by beta and expected returns are determined by more than risk. I describe each of these building blocks of behavioral finance. Barbara Piazzi __________ Informazioni da ESET NOD32 Antivirus, versione del database delle firme digitali 6798 (20120116) __________ Il messaggio è stato controllato da ESET NOD32 Antivirus. www.nod32.it |
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