Behavioral finance and wealth management : how to build optimal portfolios that account for investor biases

Bibliographic Information

Behavioral finance and wealth management : how to build optimal portfolios that account for investor biases

Michael M. Pompian

(Wiley finance series)

Wiley, c2006

Available at  / 19 libraries

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Includes bibliographical references and index

Description and Table of Contents

Description

"Pompian is handing you the magic book, the one that reveals your behavioral flaws and shows you how to avoid them. The tricks to success are here. Read and do not stop until you are one of very few magicians." -Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management Fear and greed drive markets, as well as good and bad investment decision-making. In Behavioral Finance and Wealth Management, financial expert Michael Pompian shows you, whether you're an investor or a financial advisor, how to make better investment decisions by employing behavioral finance research. Pompian takes a practical approach to the science of behavioral finance and puts it to use in the real world. He reveals 20 of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors.

Table of Contents

Preface. Acknowledgments. Part One: Introduction to the Practical Application of Behavioral Finance. Chapter 1: What Is Behavioral Finance? Chapter 2: The History of Behavioral Finance Micro. Chapter 3: Incorporating Investor Behavior into the Asset Allocation Process. Part Two: Investor Biases Defined and Illustrated. Chapter 4: Overconfidence Bias. Chapter 5: Representativeness Bias. Chapter 6: Anchoring and Adjustment Bias. Chapter 7: Cognitive Dissonance Bias. Chapter 8: Availability Bias. Chapter 9: Self-Attribution Bias. Chapter 10: Illusion of Control Bias. Chapter 11: Conservatism Bias. Chapter 12: Ambiguity Aversion Bias. Chapter 13: Endowment Bias. Chapter 14: Self-Control Bias. Chapter 15: Optimism Bias. Chapter 16: Mental Accounting Bias. Chapter 17: Confirmation Bias. Chapter 18: Hindsight Bias. Chapter 19: Loss Aversion Bias. Chapter 20: Recency Bias. Chapter 21: Regret Aversion Bias. Chapter 22: Framing Bias. Chapter 23: Status Quo Bias. Part Three: Case Studies. Chapter 24: Case Studies. Part Four: Special Topics in Practical Application of Behavioral Finance. Chapter 25: Gender, Personality Type, and Investor Behavior. Chapter 26: Investor Personality Types. Chapter 27: Neuroeconomics: The Next Frontier for Explaining Investor Behavior. Notes. Index. About the Author.

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