Reviews for Inefficient Markets

The average rating for Inefficient Markets based on 2 reviews is 5 stars.

Review # 1 was written on 2016-08-30 00:00:00 Stephen Judy This is the text book of Wurgler's behavioural finance class. The book is a collection of papers. Short, simple and systematic. Andrei Shleifer states that the behavioural finance theory rests on two major foundations. The first is limited arbitrage, and the second the investor sentiment (how real-world investors actually form their beliefs). The first four chapters focus on the limited arbitrage. The key point it that securities do not have perfect substitutes, or even the substitutes exist, the arbitrage remains risky because of the limited horizon and the prices do not go back to the fundamental instantaneously. The fifth chapter gives a model of sentiment. The last chapter provides some open questions in this area. Feel frustrated on myself since I find it hard to fully understand the models. haha, usually feel like….a dumb when reading. Recommend to any graduate student in finance. Maybe taking some theoretical classes would be helpful (serious face).

Review # 2 was written on 2014-03-31 00:00:00 Joseph Melanson I am a finance undergrad who read this book for a research paper on the efficient market hypothesis and behavioral finance in contemporary investing. This book is wonderful. If you ever want an introduction to EMH and behavioral finance, this book should be your first stop.