Behavioral Finance sucks...

It is necessary to understand investing, but they went overboard with this crap. I already whined about it elsewhere. Would have loved to see a multifactor model broken down or a Monte Carlo built from scratch.
No point in bitching about it now. It’s in the curriculum, so got to deal with it in June.
 
I thought this section was great. And I think many people underestimate its importance when dealing with real world clients (whether that’s internal or external).
Good stuff.
 
geo wrote:
I thought this section was great. And I think many people underestimate its importance when dealing with real world clients (whether that’s internal or external).
Good stuff.
Click to expand...
Me too, was one of my favorite sections of all of the 18 CFA books.
 
if you’ve ever invested your own money, or played poker, then you can appreciate BF and how great a role it plays. selective exposure and perception are huge.
 
You know what really sucks? The trading and rebalancing stuff! How boring is that???
 
marco_m wrote:
if you’ve ever invested your own money, or played poker, then you can appreciate BF and how great a role it plays. selective exposure and perception are huge.
Click to expand...
+1
 
Do not spend too much time on this section. Do the blue boxes and move on.
 
I think the best way to approach BF is try to hit as many questions as you can that test your ability to recognize the different biases.
 
but this actually shows up quite a bit (a guarentee) in L3.
I find the topic is very trivial but there is a lot of overlap and confusion between some of the definition.
 
behavioral finance is really not about knowing the individual biases and craming them altogether but rather about getting the whole concepts and then pulling them together is the bigger picture you need to look at.
i.e applying them to specific scenarios is the main thing.
 
i think it quite interesting to go through it. my first experience of human psychology actually. its interesting trust me..
 
i think it quite interesting to go through it. my first experience of human psychology actually. its interesting trust me..
 
You must log in or register to reply here.
Back
Top