End of Behavioral Finance
Abstract: While the popularity of behavioral finance has increased and behavioral biases have got so pervasive that everybody seems to be biased, the question is whether the behavioral finance experts are bias free? If mean reversion failure is the ubiquitous phenomenon witnessed across markets and nature, then is psychology or mood not just a tail explanation of an elephant phenomenon?
Mean Reversion Indexing
In their 1985 paper ‘Does the stock market overeact?', DeBondt and Thaler explained the idea of mean reversion and how it leads to the Loser’s portfolio of 3 years outperforming the Winner’s portfolio of the same time. Based on mean reversion, this paper illustrates a new stock selection and trend determining approach. The paper uses an innovative approach to convert price performance data into non price ranking data, which is positively tested for mean reversion and stationarity.
Educating the Educators: Rethinking Subject Matter and Methods
gate? In addition to general requirements in their professional education such as psychological and social foundations and student teaching, what specifically do social studies teachers need to know and be able to do? What, in particular, do they need to study in the subject matters of the social sciences (defined here, for purposes of brevity, to include history and geography), and what should they learn about its effective direction to desired results, that is, method? Usually answers to the first question require reference to the liberal arts component of teacher education and the second to methods in the professional education component. As we shall see, this separation of subject matter and method in the education of social studies teachers, although conventional, poses problems.