CFA三级基础班讲义SS3 Behavioral Finance–pdf下载

CFA三级基础班讲义SS3 Behavioral Finance–pdf下载

Reading 7:
The candidate should be able to evaluate the impact of
heuristic-driven biases on investment decision making
including representativeness, overconfidence, anchoringand-
adjustment, and aversion to ambiguity.

Reading 8
Reading 8:
a. explain how loss aversion can result in investors’
willingness to hold on to deteriorating investment
positions;
b. evaluate the impacts that the emotional frames of selfcontrol,
regret minimization, and money illusion have on
investor behavior;

Reading 12:
a. explain how the illusions of knowledge and control lead
expert forecasters to be overconfident in their forecasting
skills;
b. explain the ego defense mechanisms that forecasters
rely on as justification for inaccurate forecasts;
c. explain why forecasts may continue to be used when
previous forecasts have been inaccurate.

Reading 13:
a. contrast chronic market inefficiencies with accurate
inefficiencies and describe the behavioral factors (such as
convoy behavior, Bayesian rigidity, price-target
revisionism, and the ebullience cycle) that may give rise to
chronic inefficiencies;
b. explain the portfolio rebalancing behavior of holders,
rebalancers, valuators, and shifters, and evaluate the
impact these rebalancing behaviors have on market
efficiency.

Alpha Hunters and Beta Grazers
Chronic market inefficiencies
i. Structural: frictions on trading, organization barriers and capital flow
imbalances
ii. Behavioral
Process versus outcome
Herding (convoy)
Rigid views (Bayesian Rigidity)
Price target revisions
Correlating emotions with market (The Ebullience Cycle)