Standard or traditional finance research is based on the rational choice model that assumes market participants are fully rational, unbiased, emotionless, self-interested maximizers of expected utility. Recent research in behavioral finance recognizes that real-world investors and managers are...

Do prices and returns in the financial markets exhibit observable patterns, or are they truly ‘random walks’, as predicted by the efficient market hypothesis (EMH)? If there are patterns, the natural question becomes, why do we observe such extreme cycles of bubbles (massive over-valuations)...