CAPM vs Behavioral Finance

Risk and return: Does behavioral finance provide better explanations than the CAPM?


Bachelor Thesis, 2007

22 Pages, Grade: 7/10


Excerpt


Table of content

1. Introduction

2. The CAPM and the Efficient Market Hypothesis

3. Evidence of CAPM Anomalies

4. Modern Finance: Alternative Asset Pricing Models
4.1 Inter-temporal Asset Pricing Model - ICAPM
4.2 International Asset Pricing Model - IAPM
4.3 Multifactor Asset Pricing Models: Fama-French and Carhart

5. Influence of Psychology on Risk and Return
5.1 Prospect Theory
5.2 Heuristics, Biases and Emotions
5.3 Irrationality and Overreaction

6. Behavioral Finance versus CAPM.

7. Conclusion

8. References

Excerpt out of 22 pages

Details

Title
CAPM vs Behavioral Finance
Subtitle
Risk and return: Does behavioral finance provide better explanations than the CAPM?
College
Maastricht University
Grade
7/10
Author
Year
2007
Pages
22
Catalog Number
V196571
ISBN (eBook)
9783656225799
ISBN (Book)
9783656226833
File size
483 KB
Language
English
Keywords
Finance, CAPM, BETA, Economics, Behavioural Finance, Asset Pricing, Stock Price, Herd Behaviour Overconfidence, Overreaction, Availability Bias, Prospect Theory
Quote paper
Alexander Simon (Author), 2007, CAPM vs Behavioral Finance, Munich, GRIN Verlag, https://www.grin.com/document/196571

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