 Behavioral Approach for Projection of Profitability of Financial AssetsIkonomiceski i Sotsialni Alternativi, 2016, issue 4, 51-63 Abstract: This article proposes a rethinking of the conditions and the concept of rationality of investors in securities, and shifting the position of observation and analysis of financial assets. We defend the thesis that the assumptions of “rationality” of the capital markets (typical for classical paradigm), are too restrictive, especially the idea that invetitsionnite agents are fully rational. Therefore, the classical approach to analysis can`t cover fully all the relevant factors, which determine the rate of return on financial assets. It appears necessary to more fully analyze the irrational behavior of the majority of investors in the capital market, as well as many other specific factors. The point of this research study is to find a new, innovative approach, when designing the dynamics of profitability of exchange-traded on capital market financial instruments. Policies for the projection of strength and direction of profitability are displayed and detailed on the basis of the proposed approach. We’re developing a basic forecasting algorithm, that altogether meets the requirements of theoretical reasoning, logic and simplicity of application. JEL-codes: D03 G15 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2016:i:4:p:51-63 Access Statistics for this article More articles in Ikonomiceski i Sotsialni Alternativi from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.