w88 casino News (provided by the w88 casino of Finance)2021At 18:30 on the evening of April 23, 2019, Professor Cheng Yao’s special lectures such as the Financial Culture Festival series were held in the form of live broadcast at Tencent Conference. Professor Lei Chengyao is the deputy secretary of the Party Committee of the w88 casino of Finance, Renmin University of China. He is currently a researcher at the China Financial Policy Research Center of Renmin University of China, deputy director of the Investment Research Institute of Renmin University of China, and a bond training expert of the China Interbank Market Trading Association. Professor Lei Chengyao gave the students a lecture on the evolution of investment theory and investment strategies. The professor’s explanation was profound and simple, and the students also benefited a lot from this lecture.
This lecture is mainly based on the financial asset pricing analysis framework. It provides an in-depth introduction to the core ideas of traditional finance, behavioral finance and the market adaptation hypothesis. Combined with financial wisdom, it is recommended that investors should establish the concepts of reverse thinking and value investment, control risks, establish their own circle of competence, and avoid the herd effect and short-sightedness in investment.
First of all, Professor Lei Chengyao briefly introduced the three circuit breakers in the U.S. stock market in 2020, analyzed the reasons for the turmoil in the U.S. stock market and the impact on the Chinese stock market, and thus introduced the concept of the three major factors that determine stock prices. In addition, the professor also introduced in detail the traditional finance - the neoclassical paradigm and the risk-return model (CAPM model) of "if you don't get into the tiger's den, you won't get the tiger's cubs". Based on these two theories, a multi-factor model that can solve the unreasonableness of the CPAM model was introduced, as well as the efficient market hypothesis (EMH) proposed by Fama in 1970.
After that, Professor Lei Chengyao also analyzed the limitations of traditional finance assumptions such as being out of touch with reality, individual irrationality (behavioral finance) and positive feedback mechanisms. In particular, he made a detailed comparison between traditional finance based on complete rationality and behavioral finance based on individual irrationality. And the professor took behavioral finance as an opportunity to introduce typical cognitive biases including representativeness bias, availability bias, and anchoring effect bias. In addition, the professor also focused on the core idea of "prospect theory" that the pain of loss is greater than the joy of gain, and thereby introduced the value function of prospect theory that people are risk averse (concave function) when faced with positive returns, and prefer risk (convex function) when faced with negative returns. Finally, the professor put forward the adaptive market hypothesis to address the problem of group irrationality among investors, and told students how to have reverse thinking, avoid the herd effect and short-sightedness, and combine the wisdom provided by sociology and other disciplines to control investment risks and make value investments, so that they can correctly use investment strategies and possess investment wisdom.
During the question-and-answer session, students raised their own questions and actively participated in the question-and-answer interaction. The professor was very patient and answered the relevant questions one by one in detail.
Through this lecture, students can better broaden their knowledge and deepen their learning in finance. At the same time, they can understand the cutting-edge research and core ideas of finance, which will help them better master the research methods and research ideas of finance.
