Michael M. Pompian
Wiley Finance Series
Hoboken, New Jersey: Wiley, 2006
336pp, ISBN: 978-0-471-74517-4
This is a wide-ranging introduction to irrational investor behavior and the practical application of behavioral finance, and how to adjust portfolios for individual investors to account for behavioral biases. It also provides a history of behavioral finance, a detailed review of some of the most commonly found biases, and examines how to incorporate investor behavior into the asset allocation process.