Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories

Neha Varshney; Vaibhav Sharma

Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories

June 2022

Vol-8, Issue-3

Paper ID: 17323

ISSN: 2395-4396

Downloads: 0

Abstract & Details

Research Area

Finance

Keywords

portfolio investors behavioural

Abstract

This quantitative study compared the effectiveness of two investment strategies with regards to return on investment (ROI). One investment strategy was based on behavioral finance theories of price momentum and was compared to an equally valued investment strategy based on the efficient market theory. Price momentum (rapid acceleration in asset price) was based on the behavioral theory of positive reinforcement. The behavioral finance theory strategy was represented by a momentum strategy based on crossing moving averages. The NIFTY 50 represented the efficient market theory. This researcher sought to identify if knowledge gained from recent studies in behavioral finance could be translated into a strategy that could enable the individual investor to fare better than the efficient market theory proxy of buying and holding the NIFTY 50

License

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Author Information

#	Name	Institute / Affiliation
1	Neha Varshney	Galgotias University
2	Vaibhav Sharma	Galgotias University

How to Cite

Use the following formats to cite this article in your research.

APA Style

Varshney, Neha & Sharma, Vaibhav (2022). Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories. International Journal of Advance Research and Innovative Ideas In Education, 8(3), 3962-3968.

MLA Style

Varshney, Neha, and Vaibhav Sharma. "Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories." International Journal of Advance Research and Innovative Ideas In Education, vol. 8, no. 3, 2022, pp. 3962-3968.

IEEE Style

Neha Varshney and Vaibhav Sharma, "Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories," International Journal of Advance Research and Innovative Ideas In Education, vol. 8, no. 3, pp. 3962-3968, 2022.

Vancouver Style

Varshney Neha, Sharma Vaibhav. Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories. International Journal of Advance Research and Innovative Ideas In Education. 2022;8(3):3962-3968.

Harvard Style

Varshney, Neha & Sharma, Vaibhav (2022) 'Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories', International Journal of Advance Research and Innovative Ideas In Education, 8(3), pp. 3962-3968.

Chicago Style

Varshney, Neha and Vaibhav Sharma. "Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories." International Journal of Advance Research and Innovative Ideas In Education 8, no. 3 (2022): 3962-3968.

Turabian Style

Varshney, Neha and Vaibhav Sharma. "Comparative analysis of individual investor portfolios based on behavioural finance and efficient market theories." International Journal of Advance Research and Innovative Ideas In Education 8, no. 3 (2022): 3962-3968.