Behavioral Finance - Introduction To Market Efficiency
Published 9/2024
MP4 | Video: h264, 1920x1080 | Audio: AAC, 44.1 KHz
Language: English | Size: 4.13 GB | Duration: 2h 31m
This course unpacks the various forms of market efficiency and outlines ten popular market efficiency challenges.
What you'll learnHow behavioral finance questions the efficient market hypothesis.
Understand the three forms of market efficiency and the persistent joint hypothesis problem.
Learn about Ten Main Challenges to Market Efficiency (aka Market Anomalies). We learn about each anomaly, how it challenges market efficiency, and how to use it
Learn about the anatomy of an asset bubble and explore various examples.
RequirementsThere are no formal requirements for this course, though this course is generally taught at the undergraduate university level.
DescriptionAre markets efficient? The answer to this question is not as simple as "yes" or "no". This course unpacks the various forms of market efficiency and outlines ten popular market efficiency challenges (anomalies). We conclude by discussing how to act on these results based on your new beliefs.Course OutlineCapital Asset Pricing Model ReviewBegin to Question some of the efficient market assumptionsThree Forms of Market Efficiency Joint Hypothesis ProblemTen Challenges to Market Efficiency - We discuss each anomaly, explain why each challenges market efficiency, and conclude with best practices on how to invest in each strategy if you believe the anomaly to maintain its excess returns in the future. 1. Small vs. large cap stocks2. Value vs. Growth Stocks3. Price/Earnings ratios4. Momentum Investing5. Contrarian Investing6. Earnings Announcement Momentum7. Weekend and Monday effects8.+9. Turn-of-the-month (and year) effects10. Holiday and Halloween effectsSection 3: We also discuss the anatomy of a bubble, limits to arbitrage exploitation and conclude with how to use this information in building your own investing philosophy and strategies. If you are interesting in better understanding financial markets and stocks trading strategies, this course is for you!
OverviewSection 1: Introduction to Markets and Market Efficiency
Lecture 1 Introduction
Lecture 2 Beginning to Question Market Efficiency Assumptions
Lecture 3 Three Forms of Market Efficiency
Lecture 4 The Joint Hypothesis Problem
Section 2: 10 Challenges to Market Efficiency - Market Anomolies
Lecture 5 Challenge to Market Efficiency 1. Small Cap vs. Large Cap Stocks
Lecture 6 Challenge to Market Efficiency 2. Value vs. Growth Stocks
Lecture 7 Challenge to Market Efficiency 3. Price to Earnings Ratios
Lecture 8 Challenge to Market Efficiency 4. Momentum Strategies
Lecture 9 Challenge to Market Efficiency 5. Long-Term-Reversal (Contrarian) Strategies
Lecture 10 Challenge to Market Efficiency 6. Earnings Announcement Momentum
Lecture 11 Challenge to Market Efficiency 7. Weekend (and Monday) Effect
Lecture 12 Challenge to Market Efficiency 8 and 9. Turn-of-the-Month (and Year) Effect
Lecture 13 Challenge to Market Efficiency 10. Holiday Effect
Section 3: Bubbles, Limits to Arbitrage and Conclusion
Lecture 14 Definition and Anatomy of a Price Bubble
Lecture 15 Three Risks to Arbitrage Exploitation
Lecture 16 Final Application and Concluding Thoughts
Section 4: Exercises and Solutions
Lecture 17 Exercise Solution Video #1 (Exercises 1-3)
Lecture 18 Exercise Solution Video #2
Individual investors and financial professionals would benefit from this mini-course.
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