“Finance for Normal People…”, Dr. Meir Statman, RIIA®’s 2017 Summer Conference Keynote Speaker

Meir Statman, Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University, has just published his most recent book, Finance for Normal People: How Investors and Markets Behave. In his introduction to the book, Dr. Statman writes:

“Behavioral finance presented here is a second generation behavioral finance. The first generation, starting in the early 1980s, largely accepted standard finance’s notion of people’s wants as “rational” wants – restricted to the utilitarian benefits of high returns and low risk. That first generation commonly described people as “irrational” - succumbing to cognitive and emotional errors and misled on their way to their rational wants.

The second generation describes people as normal. It begins by acknowledging the full range of people’s normal wants - hope for riches and freedom from the fear of poverty, nurturing our children and families, being true to our values, gaining high social status, playing games and winning, and more. It distinguishes normal wants from errors, and offers guidance on using shortcuts and avoiding errors on the way to satisfying normal wants. People’s normal wants, even more than their cognitive and emotional shortcuts and errors, underlie answers to important questions of finance, including saving and spending, portfolio construction, asset pricing, and market efficiency. These are presented in this book.”

In addition to the book, Dr. Statman has prepared student and instructor manuals, facilitating the use of the book as a textbook.

Join Dr. Statman and other retirement-focused professionals at RIIA’s 2017 Summer Conference, July 17 & 18, at Salem State University, Salem, MA. (Early Bird discounts available through April 30th.)

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