Based On Behavioral Finance Theory Of Asset Price Formation

Behavioral Finance is a finance and human behavior with the edge of cross-disciplinary, it has established market participants, the psychological factor in the decision-making, as well as the market priced in the role and status of a classic negative financial theory on the simple assumption that rational investors. It complements the traditional pricing model of the financial shortcomings are more in line with the actual situation of financial markets. Thus it production is the classic theory of a huge financial challenges. For investors (including institutional investors and individual investors), behavioral finance guide is:can be taken against irrational market behavior of the investment strategy to achieve the investment objective.Capital asset pricing model of modern financial theory of an important cornerstone. Securities pricing to provide investors with a basis for decision-making. At present, China's securities market, securities pricing random, irregular and non-rational, noise trading risk. As a result, a thorough understanding of the status quo of China's securities market and stock prices in China's stock market pricing behavior is the most urgent task.Behavioral finance and asset pricing theory has been involved in the study of the hot spots. Behavioral Finance to relax the traditional finance the assumption that a rational person, that person is not entirely rational behavior in decision-making from time to time will be affected by a variety of psychological and beliefs. Asset pricing issue is the core issue of financial markets. How to make the pricing of financial assets to more reasonable prices in line with its value is very important to have a sense. By behavior of financial investors to invest in psychological research and investment behavior of the outcome of the application to the pricing of financial assets for the pricing of financial assets provides a useful way to a more realistic significance.The main part of the total of seven:The first chapter for the introduction, the paper introduces the research background, the significance and study the situation at home and abroad. The second chapter of modern finance theory and behavioral finance, introduced a modern financial and behavioral finance theory. ChapterⅢof the1120768 act as a financial pricing model with the traditional capital asset pricing models, introduced two major differences between the pricing model, and comparative analysis. ChapterⅣfor the stock market anomalies, mainly introduced in the market there is a major anomaly, and behavior related finance theory to analyze and explain. ChapterⅤ"in oil", is appearing in the stock market anomalies are analyzed on the basis of the "oil", for example, introduced the act in financial asset prices in the process of the formation of the role played. ChapterⅤ"in oil", in ChapterⅥof the stock market to act under the guidance of financial securities investment strategy, mainly based on behavioral finance to consider the next several securities investment strategy. ChapterⅦfor the conclusion.Behavioral Finance can not replace the traditional finance the future development of behavioral finance would be taken into account more factors to be considered the traditional model of finance.