测验1过度反应实际的主要内容(国外英文资料).docVIP

考试1过度反应理论的主要内容 The main content of the theory of overreaction Overreaction of behavioral finance theory is that investors losses for the stock will become more and more pessimistic, and for profit share will become more and more optimistic. They will be overreacting to both good news and bad news. When the bull market comes, stock prices will continue to rise, rise to let a person dare not believe, far beyond the investment value of listed companies, and when the bear market comes, stock prices will continue to fall, until to let everybody cant accept it. Only appear this kind of situation, in addition to investors herd mentality in work, and irrationality of investors like ordinary peoples emotional state, and the resulting cognitive biases. When market prices continue to rise, investors tend to be more optimistic. Because their operations have generated profits. The success of investment behavior will enhance the status of optimism, will cause selective cognitive biases in information processing, in which investors on the good news is too sensitive, but the bad news. This emotional and cognitive state will strengthen the buying behavior, thus forming a meet to strengthen effect or vicious cycle: when market prices fall, is just the opposite, investors will be more and more pessimistic. Because of their actual operation has produced a loss, the failure of the investment operation will strengthen its pessimism, also can cause selective cognitive biases, and investors will be sensitive to bad news too, numbness and the good news. This emotional and cognitive condition enhances the selling of behavior and creates a reinforcing effect or a vicious cycle. This is called overreaction. The cause of overreaction First, investors are overconfident. Overconfidence is the root cause of overreaction. Overconfidence is the tendency of people to overbelieve their own judgment and underestimate the biases that can exist. People tend to be overconfident in their judgments in an e