What's Going on in Behavioral Finance? A Survey of the Latest Ideas - N. Barberis - 1/31/2020

"What's Going on in Behavioral Finance? A Survey of the Latest Ideas"
Nicholas C. Barberis, Stephen and Camille Schramm Professor of Finance, Yale School of Management
Abstract: The field of behavioral finance tries to make sense of financial data using models that make psychologically accurate assumptions about the way people think. This talk discusses three prominent ideas in behavioral finance: over-extrapolation of the past; overconfidence; and probability weighting. Extrapolation of past returns can help us make sense of patterns of predictability in asset prices. Overconfidence appears to play a role in both excessive trading and excessive acquisition activity. Finally, probability weighting helps explain the overpricing of positively skewed assets. To end the talk, we discuss possible future directions for the field.
Presented as part of the Caltech + Finance Symposium 2020
Friday, January 31, 2020, Dabney Lounge

[@alakhpatel7505]

You should Upload about Admission procedure for Getting into Caltech

[@rachelryan5231]

Nice lecture