Herding Behavior in Security Market and Portfolio Management
DOI:
https://doi.org/10.58886/jfi.v21i1.5052Abstract
This study will examine the herding behavior in security market and its impact on the security pricing and overall market return as well as individual returns. Herding is known as an excessive irrational tendency of investors ignoring the fundamental information presented to them that act together in the markets (Gębka & Wohar 2013). Herding can directly lead to the security market distress and to the increase in trading volatility. In this study, we will examine how the security market under this irrational tendency would directly affect the prices of securities, and returns on individual’s portfolios.
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