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