Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
48 Cards in this Set
- Front
- Back
|
Proposes psychological theories - market anonalies = |
Financial choices |
|
|
2 example of self defeating behavior |
Yoyo dieter Educated smoker |
|
|
The results will be good for now but it can go back to what it is |
Yoyo dieter |
|
|
Subfield of behavioral economics |
Behavioral finance proposes |
|
|
You are doing something bad for you but you keep doing it |
Educated amoker |
|
|
Financial examples of self defeating behavior |
Return chaser Overconfident gumbler Too conservative investor |
|
|
The person who is only after income |
Return chaser |
|
|
2 factors of return chaser |
Risk return trade off |
|
|
The main factor which made them decide is |
Return |
|
|
They think that they are the smartest |
Overconfident gumbler |
|
|
They think that all investments are risky |
Too conservative investors |
|
|
Deals with math and equations |
Standard/traditional finance |
|
|
Imbeded with the homo economicus or “rational man” |
Standard/traditional finance |
|
|
The decisions referring to is economic |
Rational man |
|
|
The decision making is how the investors should behave |
Standard/traditional finance |
|
|
Ideal/idealistic |
Standard/traditional finance |
|
|
You tend to identify and learn from the human psychological phenomena in terms of financial market and behavior |
Behavioral finance |
|
|
They base their observation in the financial behavior of people |
Behavioral finance |
|
|
The reason why there are Behavioral finance is to improve |
Financial literacy |
|
|
You study how the real world functions |
Behavioral finance |
|
|
Examines behavior and biases of individual people |
Micro |
|
|
Behavioral bases can have profound impact on decision making and can drive sub-optimal decision making and errors that directly contracting w/ traditional finance |
Micro |
|
|
Detects and describe anomates in the efficient market hypothesis |
Macro |
|
|
Analyzes market anomalies |
Macro |
|
|
Questions informational efficiency of market |
Macro |
|
|
Market are impacted by behavioral influences |
Macro |
|
|
3 forms of efficient market hypothesis |
Weak Semi strong Strong |
|
|
It contents that all past market prices and data are fully reflected in the security prices that is technical analysis, which of little or no value |
Weak |
|
|
It contents that all publicly available information is fully reflected in the security prices that is fundamental analysis is of no value |
Semi strong |
|
|
It contents that all information is fully reflected in the security prices that is, it’s either information is of no value |
Strong |
|
|
Key assumption is that all relevant info is freely for a market to be efficient available |
Efficient |
|
|
3 main type of market anomalies |
Fundamental Technical Calendar |
|
|
These are irregularities that emerged when the stock performance is in light in the fundamental assessment of the stock’s value |
Fundamental |
|
|
Sometimes technical analysis reveals inconsistencies in the efficient market hypothesis |
Technical |
|
|
Sometimes technical analysis reveals inconsistencies in the efficient market hypothesis |
Technical |
|
|
Comes to do with the times of the year |
Calendar |
|
|
Sometimes technical analysis reveals inconsistencies in the efficient market hypothesis |
Technical |
|
|
Comes to do with the times of the year |
Calendar |
|
|
A stocks in general, small stocks in particular,abnormally has high returns |
January effect |
|
|
Sometimes technical analysis reveals inconsistencies in the efficient market hypothesis |
Technical |
|
|
Comes to do with the times of the year |
Calendar |
|
|
A stocks in general, small stocks in particular,abnormally has high returns |
January effect |
|
|
They declare at this point the specific earnings of the corporation, so people tend to do advance buying |
December effect |
|
|
Sometimes technical analysis reveals inconsistencies in the efficient market hypothesis |
Technical |
|
|
Comes to do with the times of the year |
Calendar |
|
|
A stocks in general, small stocks in particular,abnormally has high returns |
January effect |
|
|
They declare at this point the specific earnings of the corporation, so people tend to do advance buying |
December effect |
|
|
Shows higher return on the last and first 4 days of each month |
Turn of the month effect |
