Behavioral Finance

1. {
BEHAVIORAL
FINANCE

2.  Finance is the art and science of
managing money.
What is finance?

3.  A branch of finance that analyzes behavioral
biases and the effects these biases have on
financial markets .
Behavioral finance :

4. Risk aversion constraints
Trading decisions
(a)Loss aversion
(b)Overconfidence
Sale and purchase
Individual investors
Behavioral finance propositions:

5. Efficient market vs.
behavioral finance
 Well known
 Well informed
 Behavioral finance shows the behavior towards markets
 How many investors are interested
 Attract

6. Evidence shows that there are large numbers of investors
,researchers done over the year by numerous investigators
They consider market efficient
The problems is not the professionals managers lack skills and
diligence
A few no of investors are well trained, risk bearers and talented
But in few numbers survive in the long run
Conclusion: