Behavioral financial styles and behavioral biases and economics (with an emphasis on stock price valuation)

The stock market is completely under the control of news and events in society. If the right financial styles do not have power in the stock market and this market does not follow scientific and current laws, the stock price will be completely and completely affected by news and events within the society. In previous years, various methods have been presented using various methods to predict the behavior of the stock market. In this research, behavioral biases affected by the economy and specifically in the stock market are examined. This research was conducted in Iran and Tehran and the statistical population of this research includes companies listed on the Tehran Stock Exchange. In order to predict the stock price, the final price data at the end of each quarter in the years ۲۰۰۶ to ۲۰۱۵ and the stock value of the years ۲۰۱۴ and ۲۰۱۵ were analyzed as examples. In the present research, Bayes' rule was used to guess the probability of model change. Using this rule, the probability of a flow occurring can be calculated by conditioning on the occurrence or non-occurrence of another event. In this study, the results showed that there is a possibility of being in high volatility (overreaction) and low volatility (low stock price reaction despite shocks to the stock market)

Keywords:

Financial style , Behavioral financial style , Economy , Stocks , Stock prices