Representation Bias, Return Forecast, and Portfolio Selection in the Stock Market of China
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-04-10
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
Representation bias means a kind of cognitive tendency, and, for investors, it can affect their behavior in the stock market.
Whether the representation bias can help the return forecast and portfolio selection is an interesting problem that is less studied.
In this paper, based on the representation bias theory and current markets situation in China, a new hierarchy of stock measurement system is constructed and a corresponding set of criteria is also proposed.
On each criterion, we try to measure the influence among stocks with adapted fuzzy AHP.
Then the Hausdorff distance is applied to weight and compute the horizontal representation returns.
For the forecast returns, according to representation behaviors, there is also a new computation method.
Empirical results show that the representation bias information is useful to the return forecast as well as the portfolio selection.
American Psychological Association (APA)
Zhao, Daping& Fang, Yong. 2014. Representation Bias, Return Forecast, and Portfolio Selection in the Stock Market of China. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-490525
Modern Language Association (MLA)
Zhao, Daping& Fang, Yong. Representation Bias, Return Forecast, and Portfolio Selection in the Stock Market of China. Mathematical Problems in Engineering No. 2014 (2014), pp.1-8.
https://search.emarefa.net/detail/BIM-490525
American Medical Association (AMA)
Zhao, Daping& Fang, Yong. Representation Bias, Return Forecast, and Portfolio Selection in the Stock Market of China. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-490525
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-490525