Thousands of ambitious financial analysts around the world will sit for one of the three the Chartered Financial Analyst (CFA) exams this weekend.
The very few candidates who are taking the level III exam will be tested on a fun topic: behavioral finance.
“Investors are ‘normal,’ not rational,” says Meir Statman, one of the leading thinkers in behavioral finance.
Behavioral finance reconciles the discrepancy between rational valuation and irrational market pricing. It’s a booming field of study. Top behavioral finance gurus include Yale’s Robert Shiller and GMO’s James Montier.Read the rest of the article...