/*
Title: Behavioral Finance and Market Behavior
layout: chapter
*/

## Chapter Learning Objectives

### Section 1 - Investor Behavior

- Identify and describe the biases that can affect investor decision making.
- Explain how framing errors can influence investor decision making.
- Identify the factors that can influence investor profiles.



### Section 2 - Market Behavior

- Define the role of arbitrage in market efficiency.
- Describe the limits of arbitrage that may perpetuate market inefficiency.
- Identify the economic and cultural factors that can allow market inefficiencies to persist.
- Explain the role of feedback as reinforcement of market inefficiencies.



### Section 3 - Extreme Market Behavior

- Trace the typical pattern of a financial crisis.
- Identify and define the factors that contribute to a financial crisis.



### Section 4 - Behavioral Finance and Investment Strategies

- Identify the factors that make successful market timing difficult.
- Explain how technical analysis is used as an investment strategy.
- Identify the factors that encourage investor fraud in an asset bubble.



