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The disposition to sell winners too early and ride losers too long
A method of making security paper such as paper for currency notes and paper made by the method. The method comprises incorporating in the body of the paper thermoplastic material, such asExpand
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Behavioral Portfolio Theory
Abstract We develop a positive behavioral portfolio theory (BPT) and explore its implications for portfolio constrution and security design. The optimal portfolios of BPT investors resembleExpand
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Explaining investor preference for cash dividends
Abstract The well-known tendency of investors to favor cash dividends emerges quite naturally in two new theories of choice behavior [the theory of self-control due to Thaler and Shefrin (1981), andExpand
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Portfolio Optimization with Mental Accounts
We integrate appealing features of Markowitz’s mean-variance portfolio theory (MVT) and Shefrin and Statman’s behavioral portfolio theory (BPT) into a new mental accounting (MA) framework. FeaturesExpand
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Behavioral Capital Asset Pricing Theory
This paper develops a capital asset pricing theory in a market where noise traders interact with information traders. Noise traders are traders who commit cognitive errors while information tradersExpand
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Behavioral Finance: Finance with Normal People
Behavioral finance is under construction as a solid structure of finance. It incorporates parts of standard finance, replaces others, and includes bridges between theory, evidence, and practice.Expand
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The Diversification Puzzle
The levels of diversification in U.S. investors' equity portfolios present a puzzle. Today's optimal level of diversification, measured by the rules of mean–variance portfolio theory, exceeds 300Expand
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Behavioral aspects of the design and marketing of financial products
Many people believe the yield enhancement produced by covered options writing is the trading world's version of a free lunch. ...The writer of the call option agrees to sell a portion of the futureExpand
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A Behavioral Framework for Dollar-Cost Averaging
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Making Sense of Beta, Size, and Book-to-Market
We know from empirical studies that stocks of small companies with high book-to-market ratios have provided higher returns than stocks of large companies with low book-to-market ratios. But do seniorExpand
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