Harvard Business Review

JUNE 8, 2012

Daniel Kahneman , a renowned psychologist who won the Nobel Prize in economics, developed this concept in the 1970s along with his collaborator, Amos Tversky. For a market to be efficient, where price is an unbiased estimate of value, investors must be cognitively diverse. He's like an overpriced stock. This leads to the second lesson.

Beyer 14

Beyer Tversky Price Kahneman 14

Harvard Business Review

JUNE 8, 2012

Daniel Kahneman , a renowned psychologist who won the Nobel Prize in economics, developed this concept in the 1970s along with his collaborator, Amos Tversky. For a market to be efficient, where price is an unbiased estimate of value, investors must be cognitively diverse. He's like an overpriced stock. This leads to the second lesson.

Beyer 9

Beyer Tversky Price Kahneman 9

Harvard Business Review

APRIL 2, 2014

Fama said that if you want to say something more about how efficient markets are, how good a job they do of pricing assets, you need some theory of what asset prices should be. And in those early tests, it seemed like market prices mostly obeyed both CAPM and the efficient market hypothesis. As did other people.

CAPM 8

CAPM Discount Price Finance 8