Abstract
Postmodern portfolio theory, as depicted in this book, provides an overarching view of abnormal markets and less than fully rational investor behavior. Whereas market abnormality could be described in terms of econophysics, complete understanding of investor irrationality demands knowledge of neuroscience, evolutionary biology, and epidemiology. A federal court has described agriculture as a field “so vast that fully to comprehend it would require an almost universal knowledge ranging from geology, biology, chemistry and medicine to the niceties of the legislative, judicial and administrative processes of government.”1 A comparable claim befits finance, particularly as it embraces the perspectives and methodologies of the behavioral sciences.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2016 The Author(s)
About this chapter
Cite this chapter
Chen, J.M. (2016). The Monster and the Sleeping Queen. In: Finance and the Behavioral Prospect. Quantitative Perspectives on Behavioral Economics and Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-32711-2_13
Download citation
DOI: https://doi.org/10.1007/978-3-319-32711-2_13
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-32710-5
Online ISBN: 978-3-319-32711-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)