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Armando F Rocha

Finances

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What We Learn About Global Systemic Risk With Neurosciences, Armando F. Rocha Jan 2013

What We Learn About Global Systemic Risk With Neurosciences, Armando F. Rocha

Armando F Rocha

Financial market crises are frequent events that trigger large financial losses and represent important global systemic risk (GSR). GSR forecasting is, therefore, a necessity to avoid the collapse of the global financial market. Understanding GSR dynamics is imperative if GSR is to be forecasted and controlled. Traditional finance theories have developed many tools for risk management that proved to be unreliable in the case of the 2008 Crisis. Recent results on financial decision-making provided by Neurosciences have being used to model the stock market dynamics. This approach is used, here, to model stock price evolution in 20 bourses during the …


Brain Activity Follow Up Of Stock Market Financial Variables, Armando F. Rocha, João Vieito, Fábio T. Rocha Jan 2013

Brain Activity Follow Up Of Stock Market Financial Variables, Armando F. Rocha, João Vieito, Fábio T. Rocha

Armando F Rocha

Efficiency Market hypothesis assume that all investors reason in the same way to make their financial decisions. In contrast, Neurosciences have provided strong evidences that cognitive diversity is the hallmark of human intelligence. Neurofinances has shown that volunteers learned different profitable financial decision-making strategies depending on the kind of market they begun to trade. Here, we decide to further explore this hypothesis by studying a possible correlation between brain activity and the financial variables in a stock market game and to test if this correlation differ between experimental groups that trade in different market conditions. Present results show that volunteers …


The 2008 Crisis From The Neurofinance Perspective: Investor Humor And Market Sentiment, Armando F. Rocha Dec 2012

The 2008 Crisis From The Neurofinance Perspective: Investor Humor And Market Sentiment, Armando F. Rocha

Armando F Rocha

The world is still facing a financial crisis that started in mid 2007 and up to moment it is unsolved. Stock markets around the world reacted badly and the real time news has never played such an important role to investors as seen in previous crises. The impact of the media deepened the bear dynamics of markets around the world amplifying their volatility. Neurofinances is a new field of inquiring that has the purpose of studying decision making taking into consideration the role played by emotion. Here, we use these notions to develop a neurofinance modelling of the Brazilian stock …