Behavioural Finance: Insights into Irrational Minds and Markets
Behavioral finance is a rapidly expanding field, with major implications for the way in which the investment process is conducted. Behavioural Finance links the concepts of behavioral finance to measurable variables and smarter investment decision making. Comprehensive coverage relating theory to practical investment analysis provides a usable, practical guide for real-world situations.
1. Psychological Foundations.
Biases of Judgement or Perception is Reality.
Errors of Preference or There is No Such Thing as Context-free Decision Making.
2. Imperfect Markets and Limited Arbitrage.
Efficiency and LOOP.
Positive Feedback Trading.
Risk Management and Limited Arbitrage.
On the Survival of Noise Traders.
3. Style Investing.
Potential Gains to Style Rotation.
Life Cycle of an Investment Style.
Value vs. Growth: Risk or Behavioural?
Timing the Switch.
4. Stock Valuation.
Keynes' Beauty Competition.
The (Ir)relevance of Fundamentals.
Valuation and Behavioural Biases.
Cost of Capital.
Factors from Limited Arbitrage.
An Analyst's Guide.
5. Portfolio Construction and Risk Management.
Distribution of Returns.
Fat Tails or Outliers?
6. Asset Allocation.
Markets and Fundamentals.
Dividend Yield, Spreads and Ratios.
Earnings Yield, Spreads and Ratios.
The Equity Risk Premium.
Should Corporate Financiers be Running TAA?
Crashes as Critical Points.
7. Corporate Finance.
Irrational Managers/Rational Markets.
Rational Managers/Irrational Markets.
8. The Indicators.
Asset Allocation Measures.
"...In a new book, James Montier…outlines practical methods for exploiting the anomalies thrown up by behavioural finance..." (Financial Times, 25 November 2002)
"…a good introduction to this subject…." (Professional Investor, March 2003)
Buy Both and Save 25%!
Behavioural Finance: Insights into Irrational Minds and Markets (US $157.00)
-and- An Introduction to Equity Derivatives: Theory and Practice, 2nd Edition (US $76.00)
Total List Price: US $233.00
Discounted Price: US $174.75 (Save: US $58.25)