Mr John Kagai

In: Business and Management

Submitted By samaki
Words 10556
Pages 43
European Financial Management, Vol. 14, No. 1, 2007, 12–29 doi: 10.1111/j.1468-036X.2007.00415.x

Behavioural Finance: A Review and Synthesis
Avanidhar Subrahmanyam
Anderson Graduate School of Management, University of California at Los Angeles, USA E-mail: subra@anderson.ucla.edu

Abstract

I provide a synthesis of the Behavioural finance literature over the past two decades. I review the literature in three parts, namely, (i) empirical and theoretical analyses of patterns in the cross-section of average stock returns, (ii) studies on trading activity, and (iii) research in corporate finance. Behavioural finance is an exciting new field because it presents a number of normative implications for both individual investors and CEOs. The papers reviewed here allow us to learn more about these specific implications.
Keywords: behavioural finance, market efficiency, cross-section of stock returns JEL classifications: G00, G10, G11, G14, G31, G32, G34
1. Introduction

The field of finance, until recently, had the following central paradigms: (i) portfolio allocation based on expected return and risk (ii) risk-based asset pricing models such as the CAPM and other similar frameworks, (iii) the pricing of contingent claims, and (iv) the Miller-Modigliani theorem and its augmentation by the theory of agency. These economic ideas were all derived from investor rationality. While these approaches revolutionised the study of finance and brought rigour into the field, many lacunae were left outstanding by the theories. For example, the traditional models have a limited role for volume, yet in actuality, annual volume on the NYSE amounts to somewhere in the region of 100% of shares outstanding. Second, while the benefits of diversification are emphasised by modern theories, individual investors often hold only a few stocks in their portfolios. Finally, expected returns…...

Similar Documents

Mr John

...THE REPRODUCTIVE SYSTEM JASMIN CAS TABLE OF CONTENTS Task 1- 1.1 | The male reproductive system | | 1.1 | The female reproductive system | | 1.2 | The function of Testosterone, Oestrogen, Progesterone | | 1.3 | The human menstrual cycle | | Task 2 – 2.1 | The diagram of the journey of the sperm cell for fertilization | | 2.1 | The diagram of the journey of egg cell for fertilization | | 2.2 | The process of fertilization and implantation | | 2.3 | Diagram of the early stages of a developing embryo | | 2.4 | The importance of the placenta | | 2.5 | The role of the following hormone during birth and lactation | | | Reference | | | | | | | | | | | | | | | | | THE REPRODUCTIVE SYSTEM Sexual Reproduction Like all living things, humans have to reproduce to ensure the survival of the species. Reproduction is the role of the reproductive system. The female reproductive system lies mainly inside the body, whereas much of the male system is outside the body. Each reproductive system produce special cells, the sex cells called gametes (sperms and eggs). From these gametes, the typical traits of the parents are conveyed to their brood. The genes are the one that stored the hereditary information on the......

Words: 6419 - Pages: 26

John Rawl

...on John Rawls Roy Love Pol 462-01 Dr. Rose Tuesday, April 17, 2012 INTRODUCTION The philosopher and political thinker that I am doing my research paper on is John Rawls. John Rawls is world renowned as an American philosopher and a leading figure in moral and political philosophy. He was a student, professor, and an icon that achieved kleos apthiton to the highest regard. Mr. Rawls worked on many projects and wrote many books that we still use and reference today. Some of his works include: Justice as Fairness (2001), A Theory of Justice (1971), Political Liberalism (1993), and The Law of Peoples (1999). The most famous and influential work was the Theory of Justice, which was one of his first pieces of work; many say that book was his masterpiece. His work was so famous with the millions that read his work, that his work was nicknamed ‘Rawlsianism’. His work has been echoed through the ages and is quoted without people knowing who they are quoting. For example, the term veil of ignorance is used to describe the morality of an issue, like slavery. I have heard professors and others use that term without ever knowing where it came from. John Rawls has been the receipted of many awards, and according to the 42nd President of the United States, Bill Clinton, he helped a whole generation of learned Americans revive their faith in democracy itself (B. Clinton 1999). One of his famous students, Samuel Freeman, wrote a book in 2007 that will show some insight on how John......

Words: 1073 - Pages: 5

Mr Mr

...The Best Way to Measure Company Performance 2010-03-04T19:09:43Z By John Hagel III and John Seely Brown Most Wall Street analysts and investors tend to focus on return on equity as their primary measure of company performance. Many executives focus heavily on this metric as well, recognizing that it is the one that seems to get the most attention from the investor community. But is it the best metric? Even though more sophisticated valuation techniques like IRR, CFROI, and DCF modeling have come along, ROE has proven enduring. At one level, this makes sense. ROE focuses on return to the shareholders of the company. If you are a shareholder, this gives you a quick and easy to understand metric. But ROE can obscure a lot of potential problems. If investors are not careful, it can divert attention from business fundamentals and lead to nasty surprises. Companies can resort to financial strategies to artificially maintain a healthy ROE — for a while — and hide deteriorating performance in business fundamentals. Growing debt leverage and stock buybacks funded through accumulated cash can help to maintain a company's ROE even though operational profitability is eroding. Mounting competitive pressure combined with artificially low interest rates, characteristic of the last couple of decades, creates a potent incentive to engage in these strategies to keep investors happy. Excessive debt leverage becomes a significant albatross for a company when market demand for its products......

Words: 982 - Pages: 4

John Proctor

...John Proctor John Proctor is one of the main characters in this play. The play is called “The Crucible” written by Arthur Miller. It’s a great play about the Salem witch trials. John is a dynamic character because in the beginning of the play John was a sinner at the start of the play, Proctor feels so guilty because of the fact that he had this affair with Abigail Williams. It haunts him and makes him think very poorly of himself. By the end of the play, though, he is able to regain a positive self-image. He gets to the point where he feels good enough that he is willing to die to protect his good name. John Proctor Committed an awful sin. The sin of adultery with Abigail Williams. Abby was a servant in John’s house for a while. Elizabeth Proctor (John’s Wife) Kicked Abby out of the house because of suspicion. Abby still loves John Proctor but John is feeling so guilty he thinks pore unto himself and wants to stay away from Abby for what crime he has done. A scene during the play, Mr. Hale asked John if he knew his 10 commandments. John answered by repeating them answering all except adultery. During the play abbey always came to him because she still loved him. John always tried to stay away from abbey. If I was John I would feel bad also. And try to start a new life that he is trying to do. During the play John’s wife is convicted of witch craft and is taken to jail. The reason why Abbey stuck a needle in herself and said Elizabeth was using a “voodoo” doll on her...

Words: 654 - Pages: 3

John Deere

...Russ Britton Mrs. Watters English 400 9/8/14 John Deere and the Company John Deere was born in Rutland, Vermont, on February 7, 1804. He was raised by his mother basically his whole life. Growing up, he wanted to be a blacksmith. He fulfilled his dream at age 17 as a blacksmith’s apprentice. A few years later, he was doing it on his own. His next twelve years were very busy after that. In 1837, Deere moved west to Grand Detour, Illinois. As he was there he opened up his own blacksmith shop. As a blacksmith, he experienced working on other plows that had been created for farming. John quickly realized that these plows needed to be remade. Here he began to start creating his own plows and he sold three plows by 1838. He had produced ten more plows by the next year. and even forty more by 1840. The demand for these plows were high, therefore he partnered up with Leonard Andrus to produce even more. In 1846, they sold close to one thousand plows that year. A few years later, Deere noticed that Grand Detour wasn’t good enough for him. As a result, he packed up and moved to Moline, Illinois. Moline is located by the Mississippi River, which gave him access to even more opportunities. He was able to offer cheap transportation and water power. John started to get british steel because it is sturdy. That immediately sped up his operation. His company made around 1,600 plows in the year of 1850. In 1858, he transferred his leadership of the company to his son, Charles, who was......

Words: 629 - Pages: 3

John

...John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does not make him a bad guy. John is very polite. He sometimes gets angry but that does......

Words: 328 - Pages: 2

Mr John P

...Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health and Safety at Work Regulations 1999 This act ensur Management of Health...

Words: 312 - Pages: 2

John

... the essay will pursue the relationships between the grandmother, the misfit, and the son, John Wesley and his Mother and their last minute, virtuous moments right before Gods jurisdiction is handed upon them. John Wesley realizes that his actions anytime before that moment were inexcusable towards his mother, but now it is too late as he is murdered in the woods and the grandmother’s having her salvation just before the Misfit eradicates her as well. Annotated Bibliography Yao, Tianyuan Ben. "A Test of Faith: Analysis on “A Good Man is Hard to Find”." A Journal of Academic Writing (2013): 10. Yao explores, summarizes, and annotates the relationships between the Grandmother and the Roman Catholic Faith. She identifies that the grandmother puts herself and her life before that of anyone else’s which directly contradicts Christian beliefs. The grandmother continuously shows her lack of true Christian faith as she attempts to use God to save her life and as soon as she realizes it is not working she reverts to bribing the misfit. “The grandmother is also shown to care more for her life than her family’s wellbeing. Instead of speaking up for her young grandchildren, she begs to The Misfit, “You wouldn't shoot a lady, would you?” (587). Her concern for her family seems to diminish at this critical point. These traits are far from Christian teachings (see Isaiah 1:17, Psalm 82:3, John 15:13). In the desperation of begging for her life, the grandmother even uses God. The......

Words: 1174 - Pages: 5

John

...2006) makes a persuasive argument that the Gospels display eyewitness testimony and thus renews the quest for the identity of the Beloved Disciple as the author of the Fourth Gospel. While Bauckham attributes this Gospel to “the presbyter John” mentioned by Papias, the authors of this study show that the patristic evidence more likely seems to support the authorship of John the apostle and that the literary device of inclusio in the Fourth Gospel, astutely observed by Bauckham, also favors the authorship of John the son of Zebedee. Key Words: Fourth Gospel, Beloved Disciple, John, authorship, apostle, Zebedee, John the Elder, Papias, Eusebius, Muratorian Fragment, Polycrates, Irenaeus, Bauckham Introduction Recent years have witnessed a significant number of publications on the identity of “the disciple Jesus loved” in John’s Gospel. The ever more daring proposals have included identifications of this figure as diverse as the apostle Thomas, Mary Magdalene, Lazarus, James the son of Zebedee, and even the Samaritan woman, among others. 1 Most recently, Richard Bauckham has weighed in on this debate in his landmark volume Jesus and the 1. Thomas: James H. Charlesworth, The Beloved Disciple: Whose Witness Validates the Gospel of John? (Valley Forge, PA: Trinity Press International, 1995), 414–21. He lists and evaluates 22 proposals made by other scholars (pp. 127–224). Mary Magdalene: Joseph A. Grassi, The Secret Identity of the Beloved Disciple (Mahwah, NJ:......

Words: 13459 - Pages: 54

Mr John Kabali

...THE REPORT Expansion plan for selling Almarai’s products in the United Kingdom and eventually across Europe 1. Introduction This document is a report prepared to highlight the marketing plan to expand the markets of Almarai to the United Kingdom and eventually across Europe. This report also is intended to demonstrate factual statistics of the marketing position of Almarai in the Arab and how strategically the researcher purposely plan to go about it. According to the annual report 2014 of Almarai, the company’s mission is to provide high quality and nutritious food, beverage products that enrich our consumers’ lives every day. Almarai is the consumer’s preferred choice in the Arab World by providing superior products that best meet the market’s specific needs. 1.1 The essence of Almarai’s business comes from automated production facilities, high-volume logistics and regular distribution to the key retail outlets in the Kingdom and Gulf Cooperation Council (The Report: Emerging Saudi Arabia 2007). The report also mentioned that Almarai is the largest integrated dairy company in the world, with a well-recognised brand that was ranked number three (3) in the Forbes magazine. 1.2 Furthermore the overall strategic plan as mentioned in the 2014 annual report of Almarai stipulated that the focus of Almarai was continued improvement and growth. The implementation of Almarai’s strategic plan 2014 saw an accelerated growth in sales powered by the Dairy, Juice and Poultry......

Words: 352 - Pages: 2

John Locke

...John Locke - Biography John Locke (1632-1704) John Locke was born on August 29, 1632, in Warington, a village in Somerset, England. In 1646 he went to Westminster school, and in 1652 to Christ Church in Oxford. In 1659 he was elected to a senior studentship, and tutored at the college for a number of years. Still, contrary to the curriculum, he complained that he would rather be studying Descartes than Aristotle. In 1666 he declined an offer of preferment, although he thought at one time of taking up clerical work. In 1668 he was elected a fellow of the Royal Society, and in 1674 he finally graduated as a bachelor of medicine. In 1675 he was appointed to a medical studentship at the college. He owned a home in Oxford until 1684, until his studentship was taken from him by royal mandate. Locke's mentor was Robert Boyle, the leader of the Oxford scientific group. Boyle's mechanical philosophy saw the world as reducible to matter in motion. Locke learned about atomism and took the terms "primary and secondary qualities" from Boyle. Both Boyle and Locke, along with Newton, were members of the English Royal Society. Locke became friends with Newton in 1688 after he had studied Newton's Principia Mathematica Philosophiae Naturalis. It was Locke's work with the Oxford scientists that gave him a critical perspective when reading Descartes. Locke admired Descartes as an alternative to the Aristotelianism dominant at Oxford. Descartes' "way of ideas" was a major influence on Locke's...

Words: 1196 - Pages: 5

Mr John

...------------------------------------------------- ECET-402 Week 2 Lab – Acquiring Temperature & Signal Conditioning This lab actually consists of two separate but related labs. They will be presented in Parts A and B. Objective: The objective of this lab is to use an LM34 temperature sensor to acquire temperature and display it in an 8-bit binary number using LEDs and designing simple signal conditioning circuits using op-amps. Parts Needed: 1. Multisim 8 (or higher) 2. LM34 Temperature Sensor 3. ADC0809 4. 8 LEDs 5. Wires, wire cutter, and wire stripper 6. Adjustable DC Power Supply 7. Function Generator and DMM Part A – Temperature Sensor We will use an LM34 temperature sensor IC to measure temperature in Fahrenheit degrees. We will then convert the analog output voltage of the sensor to an 8-bit digital signal using the Analog to Digital converter ADC0809. Finally we will use 8 LEDs to display an 8-bit binary number representing the temperature. LM34: The LM34 series are precision integrated-circuit temperature sensors. The output voltage is directly proportional to temperature in Fahrenheit degrees. Output voltage increases by 10 mV for every one degree Fahrenheit. For example, an output voltage of 720 mV (0.72 V) indicates a temperature of 72 F. LM34 has a range of -50 to +300° F and can be operated with a voltage supply of 5 to 30 VDC. It draws only 75 µA from its......

Words: 934 - Pages: 4

Mr John Smith

...Political Parties Short Questions 1. What is a political party? • A political party is a body that seeks to gain power in Parliament • Exercise government power by putting themselves up for election and gaining the support of the public. • They are grouped together by sharing common values and ideologies • Offer policies across a range of issues. • Examples include Labour and the Conservatives 2. Distinguish between a political party and a faction • A faction is a group of like-minded politicians, formed around a key leader or in support of a set of preferred policies, and operating within the House of Commons. E.g Cornerstone within the Conservatives • Political parties are more disciplined versions of factions • Have wider membership and organisation outside of parliament. 3. What is party government? • A system through which single parties are able to form governments • Parties have clear ideological convictions and develop rival programmes • Governing party is able to claim popular mandate and enjoys sufficient unity and cohesion to make government policies • Government is accountable to electorate through its mandate and opposition parties. E.g Labour won landslide victory n 1997, but in 2005 its majority was decreased 4. What is a two party system? • A two-party system is where there are only two major political parties dominating the system. E.g Labour and Conservatives • Only 2......

Words: 1253 - Pages: 6

John

...John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d John 1 1 1 11 1 1 1 ed d d d d d dd d dd d d d d d d d d...

Words: 375 - Pages: 2

John

...          John the Baptist Prepares the Way 1 ( what good news?)The beginning of the good news about Jesus the Messiah, the Son of God, 2 as it is written in Isaiah the prophet: “I will send my messenger ahead of you, who will prepare your way” 3 “a voice of one calling in the wilderness, ‘Prepare the way for the Lord, make straight paths for him.’”(is this the good news?, what does it mean by sending a messenger is it john?) 4 And so John the Baptist appeared in the wilderness, preaching a baptism of repentance for the forgiveness of sins. (was john a chosen one to baptize people by god?) 5 The whole Judean countryside and all the people of Jerusalem went out to him. Where was this located? Confessing their sins, they were baptized by him in the Jordan River. 6 John wore clothing made of camel’s hair, with a leather belt around his waist, and he ate locusts and wild honey. 7 And this was his message (why does it matter what john wore?) when Jesus was baptizing did john baptized to at the same time?  “After me comes the one more powerful than I, the straps of whose sandals I am not worthy to stoop down and untie. 8 I baptize you with water, but he will baptize you with the Holy Spirit.”(after him comes someone more porwerful? Does that mean that he is considering himself someone powerful also? What does it mean by baptizing with the holy spirit? Baptized with the spirit of god? (NIV)   ...

Words: 264 - Pages: 2

Night Visions | 1 - 11 Episódio 11 | Antique Eastlake half lite doors Int/Ext solid wood door #5 #6 #7