Author : Manuel Gonzalez-Igual
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Prevailing Behavioral Biases and Investor Profiles by : Manuel Gonzalez-Igual
Download or read book Prevailing Behavioral Biases and Investor Profiles written by Manuel Gonzalez-Igual and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the relevance of Behavioral Finance in the functioning of financial markets. As a result of the empirical evidence through four surveys to professional investors with an average of 92 respondents, our main focus is to enhance the structure and systematization in the field. We first study the awareness and level of education in Behavioral Finance, determining a clear gap of learning experience for professional investors. We also analyze the main cognitive and emotional biases; identifying representativeness, loss aversion and herding as the most relevant ones in the decision making process. Moreover, we evaluate the prevalence of under- and over-reaction through several financial scenarios and the lack of ability to anticipate the market. Finally, we classify professional investors through their investment profile applying the BB&K Five-Way Model. We identify overconfidence as being a predominant bias affecting investors and also find a clear disconnection between investors and their clients.