Title: Behavioral Finacial Theory and Investment Fund Manager′s Choice
Abstract: According to traditional financial theory,when choosing one fund to invest,investors must consider whether the fund managers have the ability to gather information and process information better.Behavioral finance is a new field in economics.The theory of behavioral finance claims that investors and managers have many kinds of behavioral biases.These behavioral biases may result in some subjective misbehaviors,such as representativeness,prominence,overconfidence and anchoring.Which may cause investors and fund managers to overreact and underreact in the market.The optimal fund manager must not only get much information and process infomation better,but also know the theory of behavioral finance and the impact of the investors' behavior biases to the market.
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
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