Research On The Application Of Behavioral Asset Pricing Model In Stock Market

In the process of rapid growth and development of China's securities market,there are problems such as violent market volatility,abnormally rising and falling securities prices,related party transactions,insider trading and institutional manipulation of the stock market.In such a non-effective securities market,asset prices do not adequately reflect market information.This paper selects three indicators of noise trading coefficient,stock average turnover rate and stock return rate to measure the noise situation of the stock market,and compares and analyzes with the developed countries or regions of the stock market,and then demonstrates whether the Chinese stock market is effective.It is concluded that the Chinese stock market is not completely market-effective,and it is also found that there is still a certain distance between the Chinese stock market and other developed stock markets.However,comparing the SSE stock market with other developed stock markets,the results show that the gap between the SSE stock market and other developed stock markets is getting smaller and smaller.At the same time,in order to further scientifically demonstrate whether China's securities market is effective,use the relationship between China's GDP growth rate and the growth rate of the Shanghai Composite Index,and the GDP growth rate of other countries or regions to the developed countries' comprehensive stock market growth rate.The relationship comparison analysis,and their relationship construction using the Markov switching model,the results show that the Chinese stock market is not completely effective.The Markov switching model is used to divide the amplitude fluctuation of the Shanghai Composite Index's return rate into three states,namely the high amplitude state,the moderate amplitude state and the low amplitude state,and then the Shanghai Stock Exchange stocks are studied in three states.The differences and connections between behavioral asset pricing model and traditional asset pricing model are compared and analyzed,and a reasonable stock pricing model is selected.Therefore,investors can select the corresponding market beta value according to the three states,and evaluate the value of financial products with investment intentions,so as to obtain financial investment products,stocks and options futures according to certain investment portfolios,so as to obtain investment return.Of course,investors also need to pay attention to the state of the stock market to obtain the ideal financial product information.Then,the paper also gives financial regulatory authorities and financial institutions certain management and operational advice,so that they actively guide investors and promote the good operation of the Chinese stock market.In summary,this paper has carried out a combination of theoretical and empirical research on investors' investment strategies and investment behaviors,and given corresponding investment suggestions,which not only brings important importance to the construction of China's emerging securities market.Theoretical value,but also has very important practical value,but also provides a certain theoretical explanation for investors to understand the market "vision".