Investor Psychology and Asset Pricing

David Hirshleifer

Journal of Finance, 2001, vol. 56, issue 4, 1533-1597

Abstract: The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital market evidence bearing on the importance of investor psychology for security prices, and reviews recent models.

Date: 2001
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https://doi.org/10.1111/0022-1082.00379

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Working Paper: Investor Psychology and Asset Pricing (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jfinan:v:56:y:2001:i:4:p:1533-1597

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