Tag Archives: behavioral finance

C. Thomas Howard on Behavioral Finance: Reject the Model, Not the Real World

Conventional financial theory uses volatility as a proxy for risk, but C. Thomas Howard suggests that volatility is merely a proxy for emotion, making it measurable. Read More

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Carl Richards: Six Things the Investment Industry Can Do to Change the World

“We’re in a moment in time right now where there is so much change going on in our industry, really revolutionary change,” Carl Richards says. Read More

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Day 1 Recap: Carl Richards’s Advice for Dealing with the General Public (Video)

CFA Institute content directors Ron Rimkus, CFA, and Jason Voss, CFA, highlight key take-aways from the first day of the 67th CFA Institute Annual Conference in Seattle, Washington. Read More

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Trust: The Core of Client Relationship Management

Lim How, the author of two books about motivation, discussed the challenges investment professionals face when building trust with clients and co-workers. Read More

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Unapologetic after All These Years: Eugene Fama Defends Investor Rationality and Market Efficiency

The father of modern finance took on critics of efficient markets and issued stinging rebukes of “too big to fail” banks, pension plans, active management, and behavioral finance. Read More

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Daniel Kahneman: Psychology for Behavioral Finance

The Nobel Prize winner and preeminent expert on cognitive biases distilled much of his research findings into bite-sized portions. Read More

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Day Three Recap: Daniel Kahneman, Pension Finance, Commodity Stocks, and (Social) Network Theory

CFA Institute content director Jason Voss, CFA, provides a few highlights from the third day of the 65th CFA Institute Annual Conference in Chicago. Read More

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A Framework for Taming “Wildly Random” Markets

Ashvin Chhabra, chief investment officer at the Institute for Advanced Study, outlined the central tenets of his Wealth Allocation Framework, which builds on Modern Portfolio Theory and behavioral finance. Read More

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James Montier: More Realistic Financial Models Incorporating Illiquidity and Leverage Are Needed

Financial theorists, policymakers, and practitioners created the financial crisis with “bad models, bad policies, bad incentives, and bad behavior,” said James Montier of GMO UK Ltd. Read More

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Daniel Kahneman: Financial Advisers Aren’t Immune from the “Illusion of Skill”

Nobel laureate Daniel Kahneman examines the illusion of skill as it pertains to the stock-picking prowess of financial advisers. Read More

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