A supplement for undergraduate and graduate Investments courses. See the decision-making process behind investments. The Psychology of Investing is the first text of its kind to delve into the fascinating subject of how psychology affects investing. Its unique coverage describes how investors actually behave, the reasons and causes of that behavior, why the behavior hurts their wealth, and what they can do about it. The fourth edition addresses the current financial crisis, has a new chapter on framing effects, and contains new evidence and ideas in every chapter.

Table of Contents

Chapter 1: Psychology and Finance Chapter 2: Overconfidence Chapter 3: Pride and Regret Chapter 4: Risk Perceptions Chapter 5: Decision Frames Chapter 6: Mental Accounting Chapter 7: Forming Portfolios Chapter 8: Representativeness and Familiarity Chapter 9: Social Interaction and Investing Chapter 10: Emotion and Investment Decisions Chapter 11: Self-Control and Decision Making