Beyond Greed and Fear

Hersh Shefrin holds the Mario L. Belotti Chair in Finance at the Leavey School of Business, Santa Clara University.

Part I What is Behavioral Finance?: Introduction; Heuristic-Driven Bias: The First Theme; Frame Dependence: The Second Theme; Inefficient Markets: The Third Theme. Part II Prediction: Trying to Predict the Market; Sentimental Journey: The Illusion of Validity; Picking Stocks to Beat the Market; Biased Reactions to Earnings Announcements. Part III Individual Investors: Get-Evenitis - Riding Losers Too Long; Portfolios, Pyramids, Emotions, and Biases; Retirement Saving - Myopia and Self-Control. Part IV Institutional Investors: Open-Ended Mutual Funds - Misframing, Hot Hands, and Obfuscation Games; Closed-Ends Funds - What Drives Discounts?; Fixed Income Securities - The Full Measure of Behavioral Phenomena; The Money Management Industry - Framing Effects, Style Diversification, and Regret. Part V The Interface between Corporate Finance and Investment: Corporate Takeovers and the Winner's Curse; IPOs - Initial Underpricing, Long-term Underperformance, and Hot-Issue Markets; Optimism in Analysts' Earnings Predictions and Stock Recommendations. Part VI Options, Futures, and Foreign Exchange: Options - How They're Used, How They're Priced, and How They Reflect Sentiment; Commodity Futures - Orange Juice and Sentiment; Excessive Speculation in Foreign Exchange Markets.