Materialization of Behavioral Finance and Behavioral Portfolio Theory: A Brief Review
This study introduces the emergence of behavioral finance (BF) and behavioral portfolio theory (BPT) BF research dives the conventional suppositions of projected value optimization with coherent investors in proficient enjoinments. There are two major component of BF which are "way of people's thinking" (cognitive approach) and "when markets will be incompetent" (arbitrage limits) Behavioral portfolio theory describes investor's behavior, how they divide their wealth into portfolio mental account's layers (MAL) parallel of their ambitions. The development of BF study has stimulated due to the incapability of conventional structure to explore several pragmatic models.