Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases"Pompian is handing you the magic book, the one that reveals your behavioral flaws and shows you how to avoid them. The tricks to success are here. Read and do not stop until you are one of very few magicians." —Arnold S. Wood, President and Chief Executive Officer, Martingale Asset Management Fear and greed drive markets, as well as good and bad investment decision-making. In Behavioral Finance and Wealth Management, financial expert Michael Pompian shows you, whether you're an investor or a financial advisor, how to make better investment decisions by employing behavioral finance research. Pompian takes a practical approach to the science of behavioral finance and puts it to use in the real world. He reveals 20 of the most prominent individual investor biases and helps you properly modify your asset allocation decisions based on the latest research on behavioral anomalies of individual investors. |
Contents
CHAPTER 4 Overconfidence Bias | |
Representativeness Bias | |
Anchoring and Adjustment Bias | |
CHAPTER 22FramingBias BIAS DESCRIPTION | |
ADVICE | |
Other editions - View all
Behavioral Finance and Wealth Management: How to Build Optimal Portfolios ... Michael M. Pompian No preview available - 2006 |
Behavioral Finance and Wealth Management: How to Build Optimal Portfolios ... Michael Pompian No preview available - 2006 |
Common terms and phrases
advice ambiguity aversion Amos Tversky anchoring and adjustment APPLICATION RESEARCH REVIEW asset allocation availability bias average behavioral biases behavioral finance believe Bias BIAS BIAS DESCRIPTION Bias Bias Type bond Cause Investment Mistakes cause investors CHAPTER clients cognitive dissonance confirmation bias Daniel Kahneman demonstrate DESCRIPTION Bias Name DIAGNOSTIC TESTING earnings economic effect emotional endowment bias equities example expected experience feel financial goals Financial Planning forecast framing bias funds hindsight bias Homo economicus illusion of control Implications for Investors individual investors inthe investor behavior investor personality type irrational loss aversion meanvariance mental accounting Odean ofthe optimism bias options outcomes performance portfolio potential PRACTICAL APPLICATION RESEARCH practitioners probability psychology purchase Question rational recency bias Regret aversion representativeness bias response retirement returns risk tolerance samplesize neglect securities selfattribution bias Selfcontrol bias sell status quo bias strategy susceptible theory tothe trading Tversky wealth management