Non-proportional Thinking in the Finnish Stock Market

Thumbnail Image

Files

bachelor_Nikko_Tobias_2021.pdf (807.99 KB)

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.

Authors

Date

2021

Department

Rahoituksen laitos

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

22+5

Series

Abstract

A negative relation between volatility and nominal share price was found in the United States over the period 1926-2016 (Shue and Townsend 2018). The study offers non-proportional thinking as an explanation for this phenomenon. The negative price-volatility relation is found in Finland as well over the period of January 1984 – December 2020. The economic magnitudes are considerable but fall short of those found in the US.

Description

Thesis advisor

Joenväärä, Juha

Keywords

non-proportional thinking, volatility predictability, market efficiency, behavioral bias

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202201161243

Collections

[kand] Kauppakorkeakoulu / BIZ (Open Access)