‘Value’ Fueled By Behavior Bias

The financial equivalent of the Miller Lite, “tastes great, less filling,” debate is between traditional finance (which uses risk theories to explain asset pricing), and the newer behavioral finance field (which uses human behavior to provide the explanations).

Unfortunately, there’s no consensus about which side of the debate is correct. My own view is that both have much to contribute to the discussion. In other words, the story isn’t all one-sided—it’s not black or white. Instead, it’s some shade of gray.

Read the rest of the article on ETF.com.



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