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Thesis (Master's)

Reykjavík University > Samfélagssvið / School of Social Sciences > MSc Viðskiptadeild (og Klínísk sálfræði -2019) / Department of Business Administration >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1946/22580

Title: 
  • Behavioural influences in portfolio composition
Degree: 
  • Master's
Abstract: 
  • The efficient markets explanation for pricing anomalies has faced mounting challenges from the field of behavioural finance in recent times, with growing research suggesting evidence of sustained asset mispricing across equity markets. This study examines whether there are benefits to be gained from incorporating behavioural influences into the portfolio composition process. This is achieved through examination of behavioural theory and its successful practitioners in achieving excess returns on the market through fundamental analysis. Based upon this examination a framework was researched, devised and implemented through the asset selection and asset allocation process. The study found that the resultant portfolio achieved above market risk adjusted returns, across multiple weighting combinations. The results suggest that behavioural driven fundamental analysis can aid in capitalizing on equity mispricing in the market, and furthermore behavioural influences can bring benefit to the asset selection and allocation process of portfolio composition.

Accepted: 
  • Aug 27, 2015
URI: 
  • http://hdl.handle.net/1946/22580


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