Shefrin - Behavioral & Neoclassical asset pricing theories - 2008
Shefrin - Behavioral & Neoclassical asset pricing theories - 2008
Shefrin - Behavioral & Neoclassical asset pricing theories - 2008
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Representativeness Bias<br />
In Academic Research<br />
It is typically invalid to assume the<br />
existence of a representative investor<br />
with expected utility preferences and<br />
correct beliefs.<br />
It is typically invalid to assume the<br />
existence of a representative investor<br />
with prospect theory preferences whose<br />
beliefs exhibit common behavioural<br />
biases.<br />
Copyright Hersh <strong>Shefrin</strong> <strong>2008</strong><br />
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