Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Behavioural Finance - Research Paper Example

Comments (0) Cite this document
Montier who provides prolonged arguments in support of his suggestions that are mostly consistent with facts, figures and historical proofs. This clearly implies that Mr. Montier carried out a methodical research before he…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER99% of users find it useful
Behavioural Finance
Read TextPreview

Extract of sample "Behavioural Finance"

Download file to see previous pages Montier’s articles and assess them one by one by providing supportive argument.
Under this topic, Mr. Montier examined the QWERY keyboards and gave reasons as to why they are still in use today (Shiller 51). It is evident that QWERTY keyboard was established in 1874 by Christopher Sholes who saw the need to reduce the typing speed because the type writer that was in use during those times was jamming of plates in the mechanical arms due to the ease of typing that made people type faster (Thaler 8). Therefore, Mr. Montier clearly explained why the QWERTY keyboard was developed and why it is in use today. He also touched on the concept of Dvorak keyboard which is an alternative keyboard to the QWERTY but it was not adopted because it is efficient than Dvorak and certain studies suggest that the difference in their speed is very low and insignificant. However, Montier’s problem is that with adaptation of QWERTY keyboard up to date clearly implies that the benchmark policy that was used to develop this keyboard limits technological advancement and that, personally, he cannot come up with a policy benchmark (Thaler 3).
How is technology involved? His reason for not coming up with a policy benchmark is the fact that such policies restrict technological advancements and confine them to one place for a long time (Dopfel 78). The reason as to why I support his argument of rejecting policy portfolios is the fact that they do not interpret investment risks correctly. This is because they concentrate too much on profit making than on the risks involved and the best way to deal with them. Therefore, Mr. Montier’s argument about of typewriters and benchmarks is correct.
According to Montier, the notion of investment that was used in earlier times was better than the modernized idea and depiction of investment (Shiller 52). He clearly imply that the main aim of investment in early days was to look for value through purchasing what was ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Behavioural Finance Research Paper Example | Topics and Well Written Essays - 3750 words”, n.d.)
Behavioural Finance Research Paper Example | Topics and Well Written Essays - 3750 words. Retrieved from
(Behavioural Finance Research Paper Example | Topics and Well Written Essays - 3750 Words)
Behavioural Finance Research Paper Example | Topics and Well Written Essays - 3750 Words.
“Behavioural Finance Research Paper Example | Topics and Well Written Essays - 3750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Behavioural Finance

Behavioural Finance

The researcher states that behavioral finance examines how the human animal reacts in a financial system theoretically devoid of any emotions. This has been referred to in the past as ‘open-minded finance’ which is a generous expression implying that many investors often behave in a quite contradictory manner to the advice given them by their financial advisors. ‘Proponents of behavioral finance contend that people may not always be “rational,” but they are always “human.” Thus, behavioral finance exposes the irrationality of investors in general and shows human fallibility in competitive markets.’ To many, the idea of market effi...

7 Pages(1750 words)Essay

Efficient Markets Theory and Behavioural Finance

...Efficient Markets Theory and Behavioural Finance Introduction Efficient market theory is a theory used in investment that upholds the argument that the market cannot be beaten easily as the efficiency in the market causes existing stock prices to utilize and reflect all useful information. In the light of the 2007 to 2010 financial crisis, the efficient market theory can be based on the market dealings of the subprime mortgage crisis. On the other hand, the behavioural finance theory is a theory that bases the market trends on thee psychology. In this theory, therefore, assumptions are done perpetuating that the information organisation and the behaviour of market participants systematically control individuals’ decisions... in...
6 Pages(1500 words)Essay

Development of Behavioural Finance

...?Development of Behavioural Finance Behavioural finance deals with the study of the effects of various social, emotional and cognitive factors that affect the financial decision making of individuals. The major concern of behavioural finance is to track down why individuals operating in a market tend to make the choices they make. A range of differentiated factors as well as psychological issues are taken into account in order to explain people’s financial habits. The evolution of behavioural finance can be traced back to Gustave le Bon’s The Crowd: A Study of the Popular Mind (1896). This was followed by...
5 Pages(1250 words)Essay

Behavioural Finance

...?Topic: Behavioural Finance Many studies in the area of behavioural finance suggest that individual investors make systematic errors due to behavioural biases. Do you believe that more sophisticated investors (e.g. equity fund managers) can capitalize on such individual investors’ errors and consistently outperform the market on a risk-adjusted basis? Why? Financial markets are very competitive and research studies note that there are little or no externalities from those participating in the market. Given such conditions, a rational investor has high chances of recording collectively efficient outcomes from investment decisions. It is very clear that...
3 Pages(750 words)Essay

Food and How It Is Served to Reflect the Era, Governance, Culture, and Relations of Those Who Are Eating

4 Pages(1000 words)Book Report/Review

Consider any three countries currently in the news and construct an analytical discussion on what constitutes/explains their sov

16 Pages(4000 words)Essay

Behavioural Finance

...? Behavioural Finance The world has for a long time been in need of a change in the way things are done, the people recognise that the social, political and economic conditions in the universe are not in line with the needs of the society. Technological advancements have been the constantly changing since 1900’s with people being able to communicate and transact on a global scale and the middle class rising faster than ever before. However, despite these advancements, the disparity gap between the wealthy and the financially deprived people has been rising, both in nation-to-nation comparison and within the countries (Leunig, 2011, 16). Adverse and extreme climatic conditions have increased in frequency and severity and adapting... Behavioural...
14 Pages(3500 words)Essay


...? Behavioural Finance and Market Efficiency Total Number of Words: 2,998 Introduction Since 1990s, the study of behavioural finance and market efficiency often goes hand in hand. In most cases, inefficient market can lead to the development of economic recession. As a result of having poor market efficiency, a lot of global investors have become reluctant in investing their money on local and internal businesses. In general, the ability of each country to develop efficient market has something to do with the development of capital asset1. Due to the presence of inefficiency within the global market, the sales and profitability of a company is not only affected but also...
12 Pages(3000 words)Essay

Behavioural finance

...4TH March Behavioral finance The current competitive business arena has forced many local and international companies to undertake extensive research with an aim of expanding their investment portfolio as well as face off their competitors. In their efforts to determine the occurrence of a certain event, statisticians rely on heuristic principles. Tversky and Kahneman 1125, argue that heuristic principles are significant especially in simplifying the wide range of tasks that are associated with prediction of occurrence of events. However, these principles sometimes lead to errors that effect the final decision of statisticians thus affecting the overall decision making process in an organization. It is imperative to note...
10 Pages(2500 words)Research Paper


...Behavioural finance Table of Contents 3 Introduction 4 Inclusion criteria 4 Exclusion criteria 5 Literature Review 5 Different views of the researchers 6 Conclusion 11 Reference List 12 Abstract The literature emphasises on the need for a new economic paradigm. Economic paradigm is required for facilitating development of the global economy. This need is realised by every country around the world, but the government and higher authorities are reluctant to fulfil the same as it entails a huge investment. Hence, it is not plausible for the poor countries to incorporate and encourage the change. The environmental changes are frequent and unavoidable, but economic model change is rare and difficult to attain...
12 Pages(3000 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Behavioural Finance for FREE!

Contact Us