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Biology-induced effects on investor psychology and behavior

  • Murphy, Austin
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    This research utilizes the most recent research in psychology to analyze the innate causes of financial cycles within the context of applied financial theory. Such cycles are shown to be consistent with both human biology and efficient markets, but the brain states induced by biological chemicals produced internally are also explained to potentially contribute to mispricing in inefficient markets.

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    Article provided by Elsevier in its journal International Review of Financial Analysis.

    Volume (Year): 24 (2012)
    Issue (Month): C ()
    Pages: 20-25

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    Handle: RePEc:eee:finana:v:24:y:2012:i:c:p:20-25
    DOI: 10.1016/j.irfa.2012.07.001
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    7. Brad M. Barber & Terrance Odean, 2001. "Boys will be Boys: Gender, Overconfidence, and Common Stock Investment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 261-292.
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