| Behavioral finance | Models of financial markets that emphasize implications of psychological factors affecting investor behavior.
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| Breadth | The extent to which movements in the broad market index are reflected widely in movements of individual stock prices.
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| Confidence index | Ratio of the yield of top-rated corporate bonds to the yield on intermediate-grade bonds.
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| Conservativism | Notion that investors are too slow to update their beliefs in response to new evidence.
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| Dow theory | A technical analysis technique that seeks to discern long- and short-term trends in security prices.
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| Framing | Decisions are affected by how choices are described, for example, whether uncertainty is posed as potential gains from a low baseline level, or as losses from a higher baseline value.
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| Fundamental risk | Risk that even if an asset is mispriced, there is still no arbitrage opportunity, since the mispricing can widen before price eventually converges to intrinsic value.
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| Mental accounting | Individuals mentally segregate assets into independent accounts rather than viewing them as part of a unified portfolio.
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| Prospect theory | Behavioral (as opposed to rational) model of investor utility. Investor utility depends on changes in wealth rather than levels of wealth.
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| Put/Call ratio | Ratio of put options to call options outstanding on a stock.
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| Regret avoidance | Notion from behavioral finance that individuals who make decisions that turn out badly will have more regret when that decision was more unconventional.
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| Representativeness bias | People seem to believe that a small sample is just as representative of a broad population as a large one and therefore infer patterns too quickly.
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| Trin statistic | Ratio of average trading volume in declining stocks to average volume in advancing stocks. Used in technical analysis.
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