Behavioral Finance and Wealth Management How to Build Investment Strategies That Account for Investor Biases

Name: Behavioral Finance and Wealth Management How to Build Investment Strategies That Account for Investor Biases
Price: 36.1 USD
Availability: InStock
ISBN: 9781118014325

ISBN-10: 1118014324

ISBN-13: 9781118014325

Edition: 2nd 2012

Authors: Michael M. Pompian

List price: $101.00

30 day, 100% satisfaction guarantee!

Sell

Get cash fast!

Marketplace

4 new & used from $36.10

what's this?

Rush Rewards U
Members Receive:

You have reached 400 XP and carrot coins. That is the daily max!

Description:

Fear and greed drive markets, and also good and bad investment decision-making. Academics such as Daniel Kahneman, Richard Thaler, Robert Schiller, and Meir Statman have certainly put the subject of behavioral finance--the study of fear and greed and other human decision-making quirks--on the map. In contrast, Pompian takes a practical approach to the growing science of behavioral finance, and puts it to use for real investors. He applies knowledge of 20 of the most prominent individual investor biases into "behaviorally-modified" asset allocation decisions. Pompian, in fact, offers investors the first "self-help" book that helps them properly modify their asset allocations decisions based…

Book details

List price: $101.00
Edition: 2nd
Copyright year: 2012
Publisher: John Wiley & Sons Canada, Limited
Publication date: 1/3/2012
Binding: Hardcover
Pages: 352
Size: 6.30" wide x 9.10" long x 1.40" tall
Weight: 1.474
Language: English



Preface


Acknowledgments



Introduction to Behavioral Finance



What Is Behavioral Finance?


Behavioral Finance: The Big Picture


Standard Finance versus Behavioral Finance


The Role of Behavioral Finance with Private Clients


How Practical Application of Behavioral Finance Can Create a Successful Advisory Relationship


Notes



The History of Behavioral Finance Micro


Historical Perspective on the Link between Psychology and Economics


Modern Behavioral Finance


Psychographic Models Used in Behavioral Finance


Notes



Introduction to Behavioral Biases


Introduction


Behavioral Biases Defined


Why Understanding and Identifying Behavioral Biases Is Important


Categorization of Behavioral Biases


Differences between Cognitive and Emotional Biases


Difference among Cognitive Biases


Emotional Biases


A Final Word on Biases


Summary of Part One



Belief Perseverance Biases Defined and Illustrated



Cognitive Dissonance Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Conclusion


Notes



Conservatism Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Confirmation Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Representativeness Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Illusion of Control Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Final Thought


Notes



Hindsight Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Information Processing Biases Defined and Illustrated


Overview of the Structure of Chapters 10 through 16



Mental Accounting Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


The Behavioral Finance Approach to Asset Allocation based on Mental Accounting


Notes



Anchoring and Adjustment Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Bonus Discussion: Investment Strategies that Leverage Anchoring and Adjustment Bias


Notes



Framing Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Availability Bias


Bias Description


Practical Application


Research Review


Diagnostic Test


Advice


Notes



Self-Attribution Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Outcome Bias


Bias Description


Diagnostic


Notes



Recency Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Emotional Biases Defined and Illustrated



Loss Aversion Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Overconfidence Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


A Final Word on Overconfidence


Notes



Self-Control Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Status Quo Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Endowment Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Regret Aversion Bias


Bias Description


Practical Application


Research Review


Diagnostic Testing


Advice


Notes



Affinity Bias


Bias Description


Research Review


Diagnostic Testing


Advice


Notes



Application of Behavioral Finance to Asset Allocation and Case Studies



Application of Behavioral Finance to Asset Allocation


Practical Application of Behavioral Finance


Best Practical Allocation


Guidelines for Determining Best Practical Asset Allocation


Quantitative Guidelines for Incorporating Behavioral Finance in Asset Allocation


Investment Policy and Asset Allocation


Notes



Case Studies


Case Study A: Mr. Nicholas


Case Study B: Mrs. Alexander


Summary of Case Studies



Behavioral Investor Types



Behavioral Investor Type Diagnostic Process


Background of the Development of Behavioral Investor Types


Psychographic Models of Investor Behavior


Early Psychographic Models


The Behavioral Alpha Process: A Top-Down Approach


The BIT Identification Process


Summary


Notes



Behavioral Investor Types


Introduction


Preserver


Follower


Independent


Accumulator


Summary


Index