How to Model Noise Traders Investors Using Prospect TheoryReportar como inadecuado




How to Model Noise Traders Investors Using Prospect Theory - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

Lookingat stock market composition you will see investor which carry their positionsfor a long time, as well a bunch of investors that change their position manytimes within a day. The investor which negotiates using intraday strategy iswell known as: noise traders the day trader’s. The ways their behavior issimulated into the economic theory today using rules of thumbs for them, andinclude them in a market with others investors that did not use those rules,but use sophisticated mechanism such as expected value instead. Thecontribution of the paper to the literature is to offer a unified way to modelnoise traders. Regularly, agent based models in finance use to different rulesto model the behavior into the financial market. One for the skilled investors,and other to more naïve ones. The noise traders would be included inthe second group. Our proposal is to model both groups with the same rule.

KEYWORDS

Stock Market, Prospect Theory, Noise Trader

Cite this paper

Silva, E. and Takimoto, L. 2017 How to Model Noise Traders Investors Using Prospect Theory. Open Access Library Journal, 4, 1-7. doi: 10.4236-oalib.1103567.





Autor: Elder M. Silva, Lydiane Takimoto

Fuente: http://www.scirp.org/



DESCARGAR PDF




Documentos relacionados