A Behavioral Approach to Asset Pricing

A Behavioral Approach to Asset Pricing (Academic Press Advanced Finance Series)
By Hersh Shefrin

Publisher: Academic Press
Number Of Pages: 496
Publication Date: 2005-01-21
Sales Rank: 315699
ISBN / ASIN: 0126393710
EAN: 9780126393712
Binding: Hardcover
Manufacturer: Academic Press
Studio: Academic Press
Average Rating: 0
Total Reviews: 0

Book Description:

A Behavioral Approach to Asset Pricing Theory examines the reigning assumptions of asset pricing theory and reconstructs them to incorporate findings from behavioral finance. It constructs a solid, intact structure that challenges classic assumptions and at the same time provides a strong theory and efficient empirical tools.

Building on the models developed by both traditional asset pricing theorists and behavioral asset pricing theorists, this book takes the discussion to the next step. The author provides a general behaviorally based intertemporal treatment of asset pricing theory that extends to the discussion of derivatives, fixed income securities, mean-variance efficient portfolios, and the market portfolio.

The book develops a series of examples to illustrate the theoretical results. The CD-ROM contains most of the examples, worked out as Excel spreadsheets, so that a diligent reader can follow them through.
Instructors might also want to use the examples to assign class exercises, asking students to modify the numbers and see what happens.

* The first book to focus completely on how behavioral finance principles affect asset pricing
* Hersh Shefrin is a recognized expert in behavioral finance
* Behavioral finance is a growth area in finance scholarship and moving more and more into practice


Download Description:

Growing interest in the alternatives that behavioral assumptions offer to traditional rational expectations models has led many scholars to investigate the insights this developing area can offer to traditional financial models. In this book, Shefrin examines the reigning assumptions of asset pricing theory and reconstructs them to incorporate findings from behavioral finance. In other words, he takes the traditional tools in asset pricing and behavioralizes them. He constructs a solid, intact structure that challenges classic assumptions and at the same time provides a strong theory and efficient empirical tools. Building on the models developed by both traditional asset pricing theorists and behavioral asset pricing theorists, Shefrin's book takes the discussion to the next step.

Rapidshare.com