A Brief Review of Behavioral Finance
Abstract
Different behaviors play a large role in how finance is conducted; the study of financial decisions behind behaviors, psychological influences, and biases is known as Behavioral Finance. Over the past 50 years, Behavioral Finance theories have become mainstream and are among the tools used in a variety of financial industries for financial analysis. There are different theories and behaviors that I will be exploring in this paper: Rational Expectations Theory, Efficient Markets Hypothesis, Utility Theory, Prospect Theory, Anchoring, and Herd Behavior.
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DOI: http://dx.doi.org/10.18686/fm.v7i5.6499
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