2020 CFA L3 原版書2：行為金融學(xué) 資本市場(chǎng)預(yù)期

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

BEHAVIORAL

FINANCEAND

CAPITALMARKET

EXPECTATIONS

CFA

?

ProgramCurriculum

2020LEVELIIIVOLUME2

?

?

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

?2019,2018,2017,2016,2015,2014,2013,2012,2011,2010,2009,2008,2007,2006

byCFAInstitute.Allrightsreserved.

iscopyrightcoversmaterialwrittenexpresslyforthisvolumebytheeditor/saswell

asthecompilationitself.Itdoesnotcovertheindividualselectionshereinthat?rst

appearedelsewhere.PermissiontoreprintthesehasbeenobtainedbyCFAInstitute

forthiseditiononly.Furtherreproductionsbyanymeans,electronicormechanical,

includingphotocopyingandrecording,orbyanyinformationstorageorretrieval

systems,mustbearrangedwiththeindividualcopyrightholdersnoted.

CFA?,CharteredFinancialAnalyst?,AIMR-PPS?,andGIPS?arejustafewofthetrade-

marksownedbyCFAInstitute.ToviewalistofCFAInstitutetrademarksandthe

GuideforUseofCFAInstituteMarks,pleasevisitourwebsiteat.

ispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregard

tothesubjectmattercovered.Itissoldwiththeunderstandingthatthepublisher

isnotengagedinrenderinglegal,accounting,orotherprofessionalservice.Iflegal

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purposesonly.

ISBN978-1-946442-89-5(paper)

ISBN978-1-950157-13-6(ebk)

10987654321

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

HowtoUsetheCFAProgramCurriculum

v

v

vi

vi

viii

ix

BackgroundontheCBOK

OrganizationoftheCurriculum

FeaturesoftheCurriculum

DesigningYourPersonalStudyProgram

Feedback

PortfolioManagement

StudySession3

BehavioralFinance

3

Reading7

TheBehavioralFinancePerspective

Introduction

5

5

BehavioralversusTraditionalPerspectives

TraditionalFinancePerspectivesonIndividualBehavior

BehavioralFinancePerspectivesonIndividualBehavior

Neuro-economics

7

8

14

19

20

20

22

24

28

28

36

36

42

45

49

DecisionMaking

DecisionTheory

BoundedRationality

ProspectTheory

PerspectivesonMarketBehaviorandPortfolioConstruction

TraditionalPerspectivesonMarketBehavior

TraditionalPerspectivesonPortfolioConstruction

AlternativeModelsofMarketBehaviorandPortfolioConstruction

Summary

PracticeProblems

Solutions

Reading8

TheBehavioralBiasesofIndividuals

Introduction

CategorizationsofBehavioralBiases

Di?erencesbetweenCognitiveErrorsandEmotionalBiases

CognitiveErrors

BeliefPerseveranceBiases

Information-ProcessingBiases

CognitiveErrors:Conclusion

EmotionalBiases

53

53

54

55

56

56

67

73

74

74

77

80

81

82

83

84

Loss-AversionBias

Overcon?denceBias

Self-ControlBias

StatusQuoBias

EndowmentBias

Regret-AversionBias

EmotionalBiases:Conclusion

indicatesanoptionalsegment

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

ii

Contents

InvestmentPolicyandAssetAllocation

BehaviorallyModi?edAssetAllocation

CaseStudies

85

86

90

Summary

PracticeProblems

Solutions

100

103

106

Reading9

BehavioralFinanceandInvestmentProcesses

Introduction

111

111

112

112

120

121

122

122

122

123

123

124

124

126

126

127

128

128

129

130

135

137

140

141

TheUsesandLimitationsofClassifyingInvestorsintoTypes

GeneralDiscussionofInvestorTypes

LimitationsofClassifyingInvestorsintoVariousTypes

HowBehavioralFactorsA?ectAdviser–ClientRelations

FormulatingFinancialGoals

MaintainingaConsistentApproach

InvestingastheClientExpects

EnsuringMutualBene?ts

LimitationsofTraditionalRiskToleranceQuestionnaires

HowBehavioralFactorsA?ectPortfolioConstruction

InertiaandDefault

Na?veDiversi?cation

CompanyStock:InvestingintheFamiliar

ExcessiveTrading

HomeBias

BehavioralPortfolioTheory

BehavioralFinanceandAnalystForecasts

Overcon?denceinForecastingSkills

In?uenceofCompany’sManagementonAnalysis

AnalystBiasesinConductingResearch

HowBehavioralFactorsA?ectCommitteeDecisionMaking

InvestmentCommitteeDynamics

TechniquesforStructuringandOperatingCommitteestoAddress

BehavioralFactors

142

143

143

144

146

148

149

152

160

HowBehavioralFinanceIn?uencesMarketBehavior

De?ningMarketAnomalies

Momentum

BubblesandCrashes

ValueandGrowth

Summary

PracticeProblems

Solutions

StudySession4

Reading10

CapitalMarketExpectations

165

CapitalMarketExpectations,Part1:FrameworkandMacro

Considerations

Introduction

167

168

168

169

172

FrameworkandChallenges

AFrameworkforDevelopingCapitalMarketExpectations

ChallengesinForecasting

indicatesanoptionalsegment

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

Contents

iii

EconomicandMarketAnalysis

TheRoleofEconomicAnalysis

AnalysisofEconomicGrowth

ApproachestoEconomicForecasting

BusinessCycleAnalysis

AnalysisofMonetaryandFiscalPolicy

InternationalInteractions

Summary

180

180

180

186

190

197

205

209

214

216

PracticeProblems

Solutions

Reading11

CapitalMarketExpectations,Part2:ForecastingAssetClassReturns

Introduction

OverviewofToolsandApproaches

TheNatureoftheProblem

217

217

218

218

219

220

220

222

228

230

230

231

234

238

240

240

240

241

243

243

244

245

247

247

249

255

255

255

256

258

258

260

260

263

263

268

271

ApproachestoForecasting

ForecastingFixed-IncomeReturns

ApplyingDCFtoFixedIncome

TheBuildingBlockApproachtoFixed-IncomeReturns

RisksinEmergingMarketBonds

ForecastingEquityReturns

HistoricalStatisticsApproachtoEquityReturns

DCFApproachtoEquityReturns

RiskPremiumApproachestoEquityReturns

RisksinEmergingMarketEquities

ForecastingRealEstateReturns

HistoricalRealEstateReturns

RealEstateCycles

CapitalizationRates

TheRiskPremiumPerspectiveonRealEstateExpectedReturn

RealEstateinEquilibrium

Publicvs.PrivateRealEstate

Long-TermHousingReturns

ForecastingExchangeRates

FocusonGoodsandServices,Trade,andtheCurrentAccount

FocusonCapitalFlows

ForecastingVolatility

EstimatingaConstantVCVMatrixwithSampleStatistics

VCVMatricesfromMulti-FactorModels

ShrinkageEstimationofVCVMatrices

EstimatingVolatilityfromSmoothedReturns

Time-VaryingVolatility:ARCHModels

AdjustingaGlobalPortfolio

Macro-BasedRecommendations

QuantifyingtheViews

Summary

PracticeProblems

Solutions

Glossary

G-1

indicatesanoptionalsegment

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?CFAInstitute.Forcandidateuseonly.Notfordistribution.

v

HowtoUsetheCFA

ProgramCurriculum

C

ongratulationsonreachingLevelIIIoftheCharteredFinancialAnalyst?(CFA?)

Program.isexcitingandrewardingprogramofstudyre?ectsyourdesiretobecome

aseriousinvestmentprofessional.Youhaveembarkedonaprogramnotedforitshigh

ethicalstandardsandthebreadthofknowledge,skills,andabilities(competencies)

itdevelops.YourcommitmenttotheCFAProgramshouldbeeducationallyand

professionallyrewarding.

ecredentialyouseekisrespectedaroundtheworldasamarkofaccomplish-

mentanddedication.Eachleveloftheprogramrepresentsadistinctachievementin

professionaldevelopment.Successfulcompletionoftheprogramisrewardedwith

membershipinaprestigiousglobalcommunityofinvestmentprofessionals.CFA

charterholdersarededicatedtolife-longlearningandmaintainingcurrencywiththe

ever-changingdynamicsofachallengingprofession.eCFAProgramrepresentsthe

?rststeptowardacareer-longcommitmenttoprofessionaleducation.

eCFAexaminationmeasuresyourmasteryofthecoreknowledge,skills,and

abilitiesrequiredtosucceedasaninvestmentprofessional.esecorecompetencies

arethebasisfortheCandidateBodyofKnowledge(CBOK?).eCBOKconsistsof

fourcomponents:

AbroadoutlinethatliststhemajortopicareascoveredintheCFAProgram

(/programs/cfa/curriculum/cbok);

■■

Topicareaweightsthatindicatetherelativeexamweightingsofthetop-level

topicareas(/programs/cfa/curriculum/overview);

■■

Learningoutcomestatements(LOS)thatadvisecandidatesaboutthespeci?c

■■

knowledge,skills,andabilitiestheyshouldacquirefromreadingscoveringa

topicarea(LOSareprovidedincandidatestudysessionsandatthebeginning

ofeachreading);and

eCFAProgramcurriculumthatcandidatesreceiveuponexamination

registration.

■■

erefore,thekeytoyoursuccessontheCFAexaminationsisstudyingandunder-

standingtheCBOK.efollowingsectionsprovidebackgroundontheCBOK,the

organizationofthecurriculum,featuresofthecurriculum,andtipsfordesigningan

e?ectivepersonalstudyprogram.

BACKGROUNDONTHECBOK

eCFAProgramisgroundedinthepracticeoftheinvestmentprofession.Beginning

withtheGlobalBodyofInvestmentKnowledge(GBIK),CFAInstituteperformsa

continuouspracticeanalysiswithinvestmentprofessionalsaroundtheworldtodeter-

minethecompetenciesthatarerelevanttotheprofession.Regionalexpertpanelsand

targetedsurveysareconductedannuallytoverifyandreinforcethecontinuousfeed-

backabouttheGBIK.epracticeanalysisprocessultimatelyde?nestheCBOK.e

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HowtoUsetheCFAProgramCurriculum

vi

CBOKre?ectsthecompetenciesthataregenerallyacceptedandappliedbyinvestment

professionals.esecompetenciesareusedinpracticeinageneralistcontextandare

expectedtobedemonstratedbyarecentlyquali?edCFAcharterholder.

eCFAInstitutesta?,inconjunctionwiththeEducationAdvisoryCommittee

andCurriculumLevelAdvisors,whoconsistofpracticingCFAcharterholders,

designstheCFAProgramcurriculuminordertodelivertheCBOKtocandidates.

eexaminations,alsowrittenbyCFAcharterholders,aredesignedtoallowyouto

demonstrateyourmasteryoftheCBOKassetforthintheCFAProgramcurriculum.

Asyoustructureyourpersonalstudyprogram,youshouldemphasizemasteryofthe

CBOKandthepracticalapplicationsofthatknowledge.Formoreinformationonthe

practiceanalysis,CBOK,anddevelopmentoftheCFAProgramcurriculum,please

visit.

ORGANIZATIONOFTHECURRICULUM

eLevelIIICFAProgramcurriculumisorganizedintoseventopicareas.Each

topicareabeginswithabriefstatementofthematerialandthedepthofknowledge

expected.Itisthendividedintooneormorestudysessions.esestudysessions—16

sessionsintheLevelIIIcurriculum—shouldformthebasicstructureofyourreading

andpreparation.Eachstudysessionincludesastatementofitsstructureandobjective

andisfurtherdividedintoassignedreadings.Anoutlineillustratingtheorganization

ofthese16studysessionscanbefoundatthefrontofeachvolumeofthecurriculum.

ereadingsarecommissionedbyCFAInstituteandwrittenbycontentexperts,

includinginvestmentprofessionalsanduniversityprofessors.Eachreadingincludes

LOSandthecorematerialtobestudied,oftenacombinationoftext,exhibits,and

in-textexamplesandquestions.Areadingtypicallyendswithpracticeproblemsfol-

lowedbysolutionstotheseproblemstohelpyouunderstandandmasterthematerial.

eLOSindicatewhatyoushouldbeabletoaccomplishafterstudyingthematerial.

eLOS,thecorematerial,andthepracticeproblemsaredependentoneachother,

withthecorematerialandthepracticeproblemsprovidingcontextforunderstanding

thescopeoftheLOSandenablingyoutoapplyaprincipleorconceptinavariety

ofscenarios.

eentirereadings,includingthepracticeproblemsattheendofthereadings,are

thebasisforallexaminationquestionsandareselectedordevelopedspeci?callyto

teachtheknowledge,skills,andabilitiesre?ectedintheCBOK.

YoushouldusetheLOStoguideandfocusyourstudybecauseeachexamination

questionisbasedononeormoreLOSandthecorematerialandpracticeproblems

associatedwiththeLOS.Asacandidate,youareresponsiblefortheentiretyofthe

requiredmaterialinastudysession.

WeencourageyoutoreviewtheinformationabouttheLOSonourwebsite(www.

/programs/cfa/curriculum/study-sessions),includingthedescriptions

ofLOS“commandwords”onthecandidateresourcespageat.

FEATURESOFTHECURRICULUM

OPTIONAL

SEGMENT

Requiredvs.OptionalSegmentsYoushouldreadallofanassignedreading.Insome

cases,though,wehavereprintedanentirepublicationandmarkedcertainpartsofthe

readingas“optional.”eCFAexaminationisbasedonlyontherequiredsegments,

andtheoptionalsegmentsareincludedonlywhenitisdeterminedthattheymight

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

HowtoUsetheCFAProgramCurriculum

vii

helpyoutobetterunderstandtherequiredsegments(byseeingtherequiredmaterial

initsfullcontext).Whenanoptionalsegmentbegins,youwillseeaniconandadashed

verticalbarintheoutsidemarginthatwillcontinueuntiltheoptionalsegmentends,

accompaniedbyanothericon.Unlessthematerialisspeci?callymarkedasoptional,

youshouldassumeitisrequired.Youshouldrelyontherequiredsegmentsandthe

reading-speci?cLOSinpreparingfortheexamination.

ENDOPTIONAL

SEGMENT

PracticeProblems/SolutionsAllpracticeproblemsattheendofthereadingsaswellas

theirsolutionsarepartofthecurriculumandarerequiredmaterialfortheexamination.

Inadditiontothein-textexamplesandquestions,thesepracticeproblemsshouldhelp

demonstratepracticalapplicationsandreinforceyourunderstandingoftheconcepts

presented.SomeofthesepracticeproblemsareadaptedfrompastCFAexaminations

and/ormayserveasabasisforexaminationquestions.

GlossaryForyourconvenience,eachvolumeincludesacomprehensiveglossary.

roughoutthecurriculum,aboldedwordinareadingdenotesatermde?nedin

theglossary.

Notethatthedigitalcurriculumthatisincludedinyourexaminationregistration

feeissearchableforkeywords,includingglossaryterms.

LOSSelf-CheckWehaveinsertedcheckboxesnexttoeachLOSthatyoucanuseto

trackyourprogressinmasteringtheconceptsineachreading.

SourceMaterialeCFAInstitutecurriculumcitestextbooks,journalarticles,and

otherpublicationsthatprovideadditionalcontextandinformationabouttopicscovered

inthereadings.Asacandidate,youarenotresponsibleforfamiliaritywiththeoriginal

sourcematerialscitedinthecurriculum.

NotethatsomereadingsmaycontainawebaddressorURL.ereferencedsites

wereliveatthetimethereadingwaswrittenorupdatedbutmayhavebeendeacti-

vatedsincethen.

SomereadingsinthecurriculumcitearticlespublishedintheFinancialAnalystsJournal?,

whichisthe?agshippublicationofCFAInstitute.Sinceitslaunchin1945,theFinancial

AnalystsJournalhasestablisheditselfastheleadingpractitioner-orientedjournalinthe

investmentmanagementcommunity.Overtheyears,ithasadvancedtheknowledgeand

understandingofthepracticeofinvestmentmanagementthroughthepublicationof

peer-reviewedpractitioner-relevantresearchfromleadingacademicsandpractitioners.

Ithasalsofeaturedthought-provokingopinionpiecesthatadvancethecommonlevelof

discoursewithintheinvestmentmanagementprofession.Someofthemostin?uential

researchintheareaofinvestmentmanagementhasappearedinthepagesoftheFinancial

AnalystsJournal,andseveralNobellaureateshavecontributedarticles.

CandidatesarenotresponsibleforfamiliaritywithFinancialAnalystsJournalarticles

thatarecitedinthecurriculum.But,asyourtimeandstudiesallow,westronglyencour-

ageyoutobeginsupplementingyourunderstandingofkeyinvestmentmanagement

issuesbyreadingthispractice-orientedpublication.Candidateshavefullonlineaccess

totheFinancialAnalystsJournalandassociatedresources.Allyouneedistologinon

usingyourcandidatecredentials.

Errataecurriculumdevelopmentprocessisrigorousandincludesmultiplerounds

ofreviewsbycontentexperts.Despiteoure?ortstoproduceacurriculumthatisfree

oferrors,therearetimeswhenwemustmakecorrections.Curriculumerrataareperi-

odicallyupdatedandpostedonthecandidateresourcespageat.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

HowtoUsetheCFAProgramCurriculum

viii

DESIGNINGYOURPERSONALSTUDYPROGRAM

CreateaScheduleAnorderly,systematicapproachtoexaminationpreparationis

critical.Youshoulddedicateaconsistentblockoftimeeveryweektoreadingand

studying.Completeallassignedreadingsandtheassociatedproblemsandsolutions

ineachstudysession.ReviewtheLOSbothbeforeandafteryoustudyeachreading

toensurethatyouhavemasteredtheapplicablecontentandcandemonstratethe

knowledge,skills,andabilitiesdescribedbytheLOSandtheassignedreading.Usethe

LOSself-checktotrackyourprogressandhighlightareasofweaknessforlaterreview.

Successfulcandidatesreportanaverageofmorethan300hourspreparingfor

eachexamination.Yourpreparationtimewillvarybasedonyourprioreducation

andexperience,andyouwillprobablyspendmoretimeonsomestudysessionsthan

onothers.AstheLevelIIIcurriculumincludes16studysessions,agoodplanisto

devote15?20hoursperweekfor16weekstostudyingthematerial,andusethe?nal

fourtosixweeksbeforetheexaminationtoreviewwhatyouhavelearnedandpractice

withpracticequestionsandmockexaminations.isrecommendation,however,may

underestimatethehoursneededforappropriateexaminationpreparationdepending

onyourindividualcircumstances,relevantexperience,andacademicbackground.

Youwillundoubtedlyadjustyourstudytimetoconformtoyourownstrengthsand

weaknessesandtoyoureducationalandprofessionalbackground.

Youshouldallowampletimeforbothin-depthstudyofalltopicareasandaddi-

tionalconcentrationonthosetopicareasforwhichyoufeeltheleastprepared.

Aspartofthesupplementalstudytoolsthatareincludedinyourexamination

registrationfee,youhaveaccesstoastudyplannertohelpyouplanyourstudytime.

estudyplannercalculatesyourstudyprogressandpacebasedonthetimeremaining

untilexamination.Formoreinformationonthestudyplannerandothersupplemental

studytools,pleasevisit.

Asyouprepareforyourexam,wewille-mailyouimportantexaminationupdates,

testingpolicies,andstudytips.Besuretoreadthesecarefully.

CFAInstitutePracticeQuestionsYourexaminationregistrationfeeincludesdigital

accesstohundredsofpracticequestionsthatareadditionaltothepracticeproblems

attheendofthereadings.esepracticequestionsareintendedtohelpyouassess

yourmasteryofindividualtopicareasasyouprogressthroughyourstudies.Aftereach

practicequestion,youwillbeabletoreceiveimmediatefeedbacknotingthecorrect

responsesandindicatingtherelevantassignedreadingsoyoucanidentifyareasof

weaknessforfurtherstudy.Formoreinformationonthepracticequestionsets,please

visit.

CFAInstituteMockExaminationsYourexaminationregistrationfeealsoincludes

digitalaccesstothree-hourmockexaminationsthatsimulatethemorningandafter-

noonsessionsoftheactualCFAexamination.esemockexaminationsareintended

tobetakenafteryoucompleteyourstudyofthefullcurriculumandtakepractice

questionssoyoucantestyourunderstandingofthecurriculumandyourreadiness

fortheexamination.Youwillreceivefeedbackattheendofthemockexamination,

notingthecorrectresponsesandindicatingtherelevantassignedreadingssoyoucan

assessareasofweaknessforfurtherstudyduringyourreviewperiod.Werecommend

thatyoutakemockexaminationsduringthe?nalstagesofyourpreparationforthe

actualCFAexamination.Formoreinformationonthemockexaminations,pleasevisit

.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

HowtoUsetheCFAProgramCurriculum

ix

PreparatoryProvidersAfteryouenrollintheCFAProgram,youmayreceivenumer-

oussolicitationsforpreparatorycoursesandreviewmaterials.Whenconsidering

aprepcourse,makesuretheproviderbelongstotheCFAInstituteApprovedPrep

ProviderProgram.ApprovedPrepProvidershavecommittedtofollowCFAInstitute

guidelinesandhighstandardsintheiro?eringsandcommunicationswithcandidates.

FormoreinformationontheApprovedPrepProviders,pleasevisitwww.cfainstitute.

org/programs/cfa/exam/prep-providers).

Remember,however,thattherearenoshortcutstosuccessontheCFAexamina-

tions;readingandstudyingtheCFAcurriculumisthekeytosuccessontheexamina-

tion.eCFAexaminationsreferenceonlytheCFAInstituteassignedcurriculum—no

preparatorycourseorreviewcoursematerialsareconsultedorreferenced.

SUMMARY

EveryquestionontheCFAexaminationisbasedonthecontentcontainedintherequired

readingsandononeormoreLOS.Frequently,anexaminationquestionisbasedona

speci?cexamplehighlightedwithinareadingoronaspeci?cpracticeproblemandits

solution.Tomakee?ectiveuseoftheCFAProgramcurriculum,pleaserememberthese

keypoints:

1

Allpagesofthecurriculumarerequiredreadingfortheexaminationexceptfor

occasionalsectionsmarkedasoptional.Youmayreadoptionalpagesasback-

ground,butyouwillnotbetestedonthem.

2

3

Allquestions,problems,andtheirsolutions—foundattheendofreadings—are

partofthecurriculumandarerequiredstudymaterialfortheexamination.

Youshouldmakeappropriateuseofthepracticequestionsandmockexamina-

tionsaswellasothersupplementalstudytoolsandcandidateresourcesavailable

at.

4

5

Createascheduleandcommitsu?cientstudytimetocoverthe16studysessions,

usingthestudyplanner.Youshouldalsoplantoreviewthematerialsandtake

practicequestionsandmockexaminations.

Someoftheconceptsinthestudysessionsmaybesupersededbyupdated

rulingsand/orpronouncementsissuedafterareadingwaspublished.Candidates

areexpectedtobefamiliarwiththeoverallanalyticalframeworkcontainedinthe

assignedreadings.Candidatesarenotresponsibleforchangesthatoccurafterthe

materialwaswritten.

FEEDBACK

AtCFAInstitute,wearecommittedtodeliveringacomprehensiveandrigorouscurric-

ulumforthedevelopmentofcompetent,ethicallygroundedinvestmentprofessionals.

Werelyoncandidateandinvestmentprofessionalcommentsandfeedbackaswe

worktoimprovethecurriculum,supplementalstudytools,andcandidateresources.

Pleasesendanycommentsorfeedbacktoinfo@.Youcanbe

assuredthatwewillreviewyoursuggestionscarefully.Ongoingimprovementsinthe

curriculumwillhelpyouprepareforsuccessontheupcomingexaminationsandfor

alifetimeoflearningasaseriousinvestmentprofessional.

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PortfolioManagement

StudySession3

BehavioralFinance

StudySession4

StudySession5

CapitalMarketExpectations

AssetAllocationandRelatedDecisionsinPortfolio

Management

StudySession6

StudySession7

StudySession8

StudySession9

StudySession10

StudySession11

StudySession12

StudySession13

StudySession14

StudySession15

StudySession16

DerivativesandCurrencyManagement

Fixed-IncomePortfolioManagement(1)

Fixed-IncomePortfolioManagement(2)

EquityPortfolioManagement(1)

EquityPortfolioManagement(2)

AlternativeInvestmentsPortfolioManagement

PrivateWealthManagement(1)

PrivateWealthManagement(2)

PortfolioManagementforInstitutionalInvestors

Trading,PerformanceEvaluation,andManagerSelection

CasesinPortfolioManagementandRiskManagement

isvolumeincludesStudySessions3–4.

?2019CFAInstitute.Allrightsreserved.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

PortfolioManagement

2

ecandidateshouldbeabletoprepareanappropriateinvestmentpolicystatement

andassetallocation;formulatestrategiesformanaging,monitoring,andrebalancing

investmentportfolios;andevaluateportfolioperformance.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

PORTFOLIOMANAGEMENT

3

STUDYSESSION

BehavioralFinance

B

ehavioral?nanceisintroducedinthe?rststudysessiononportfoliomanagement

becauseallmarketparticipants,regardlessofexpertiseorexperience,maybesubject

tobehavioralbiases.Behavioral?nanceprovidesinsightintohowemotionalbiasesand

cognitiveerrorsmayin?uenceindividuals’perceptionsandinvestmentdecisions.Asa

consequence,knowledgeofbehavioralbiasesmayhelpinunderstandingclientgoals,

inconstructinginvestmentportfolios,andinidentifyinginconsistenciesininvestment

decisionmaking.Behavioral?nancealsoprovidesinsightsintoissuessuchasmarket

anomalies.ereadingsproposethatintegrationofbehavioralandtraditional?nance

mayleadtoabetteroutcomethaneitherapproachusedinisolation.

Reading7

Reading8

Reading9

eBehavioralFinancePerspective

byMichaelM.Pompian,CFA

eBehavioralBiasesofIndividuals

byMichaelM.Pompian,CFA

BehavioralFinanceandInvestmentProcesses

byMichaelM.Pompian,CFA,ColinMcLean,MBA,FIA,

FSIP,andAlistairByrne,PhD,CFA

Note:Thereadingsinthisstudy

sessionusewidelyrecognized

terminology.Nevertheless,

readersshouldbeaware

thatwritersonbehavioral

financevaryintheirchoiceof

terminology.

?2019CFAInstitute.Allrightsreserved.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

?CFAInstitute.Forcandidateuseonly.Notfordistribution.

READING

7

TheBehavioralFinancePerspective

byMichaelM.Pompian,CFA

MichaelM.Pompian,CFA,isatSunpointeInvestments(USA)

LEARNINGOUTCOMES

MasteryThecandidateshouldbeableto:

a.contrasttraditionalandbehavioral?nanceperspectiveson

investordecisionmaking;

b.contrastexpectedutilityandprospecttheoriesofinvestment

decisionmaking;

c.discussthee?ectthatcognitivelimitationsandbounded

rationalitymayhaveoninvestmentdecisionmaking;

d.comparetraditionalandbehavioral?nanceperspectiveson

portfolioconstructionandthebehaviorofcapitalmarkets.

1

INTRODUCTION

Behavioral?nanceattemptstounderstandandexplainobservedinvestorandmarket

behaviors.isdi?ersfromtraditional(s