Chapter 1 -- The Structure of a Behavioral Revolution § 1.1 -- Abnormal markets, irrational investors § 1.2 -- Anomalies, fast and slow § 1.3 -- Sell in May and go away? § 1.4 -- Law on the market § 1.5 -- Raw emotion § 1.6 -- Trade like a girl Chapter 2 -- Mental Accounting, Emotional Hierarchies, and Behavioral Heuristics § 2.1 -- Keeping emotional score § 2.

2 -- Maslowian portfolio theory § 2.3 -- "Shots at greatness": Rehabilitating self-actualization in neo-Maslowian thought as a trading strategy § 2.4 -- Behavioral environmental economics § 2.5 -- Fables of the reconstruction Chapter 3 -- Higher-Moment Capital Asset Pricing and Its Behavioral Implications § 3.1 -- The conventional capital asset pricing model § 3.2 -- Four-moment CAPM as a Taylor series expansion § 3.3 -- A bridge between econometric and behavioral views of low volatility Chapter 4 -- Tracking the Low-Volatility Anomaly Across Behavioral Space § 4.1 -- The low-volatility anomaly and Bowman''s paradox § 4.

2 -- Beta as a composite measure of volatility and correlation § 4.3 -- Downside volatility and correlation tightening in emerging markets § 4.4 -- Pricing and predicting correlation risk § 4.5 -- Evidence against a correlation risk premium Chapter 5 -- The Intertemporal Capital Asset Pricing Model: Hedging Investment Risk Across Time § 5.1 -- The intertemporal capital asset pricing model § 5.2 -- Bad beta, good beta § 5.3 -- Addressing the low-volatility anomaly through spatial and temporal bifurcations of beta Chapter 6 -- Risk Aversion § 6.1 -- The Arrow-Pratt measures of risk aversion; the coefficient of absolute risk aversion § 6.

2 -- The coefficient of relative risk aversion § 6.3 -- Pratt''s risk-averse insurance premium § 6.4 -- Hyperbolic absolute risk aversion § 6.5 -- A comparison with scale-invariant models of financial returns § 6.6 -- Risk aversion, risk tolerance, and their relationship to the Sharpe and kappa ratios § 6.7 -- The Allais paradox § 6.8 -- The St. Petersburg paradox Chapter 7 -- The Equity Risk Premium and the Equity Premium Puzzle §7.

1 -- The equity risk premium § 7.2 -- A cautious stroll off Wall Street § 7.3 -- The equity premium puzzle § 7.4 -- Another puzzle, and a challenge § 7.5 -- Habit formation and the life-cycle hypothesis § 7.6 -- Catching up with the Joneses § 7.7 -- Macroeconomic disaster and personal peril § 7.8 -- Familiarity breeds irrationality § 7.

9 -- Gaudeamus igitur: The familiar but curious economics of university endowments Chapter 8 -- Prospect Theory § 8.1 -- Comprehensive accounts of behavioral finance § 8.2 -- Responding to anomalies in expected utility theory § 8.3 -- The value function § 8.4 -- Flagging prospect theory: Log-logistic distribution § 8.5 -- Flagging prospect theory: Two-parameter lognormal distribution § 8.6 -- Cumulative prospect theory § 8.7 -- The weighting function § 8.

8 -- The fourfold pattern Chapter 9 -- Specific Applications of Prospect Theory to Behavioral Finance § 9.1 -- The longing for lotteries § 9.2 -- Initial public offerings § 9.3 -- Prospect theory and Bowman''s paradox § 9.4 -- Prospect theory and the equity premium puzzle: Myopic loss aversion § 9.5 -- Another equity premium solution: Prospect theory and asset pricing Chapter 10 -- Beyond Hope and Fear: Behavioral Portfolio Theory § 10.1 -- Prospect''s progress: Beyond theories of Everyman § 10.2 -- SP/A theory § 10.

3 -- The human heart in conflict with itself § 10.4 -- Roy''s safety-first criterion § 10.5 -- Behavioral portfolio theory § 10.6 -- The practical consequences of behaviorally sensitive portfolio optimization § 10.7 -- Behavioral portfolio theory as a form of value-at-risk (VaR) analysis Chapter 11 -- Behavioral Gaps Between Hypothetical Investment Returns and Actual Investor Returns § 11.1 -- Hypothetical investment returns versus actual investor returns § 11.2 -- The disposition effect § 11.3 -- The behavioral origins of the investment gap § 11.

4 -- ψ: Measuring behavioral gaps in investment performance § 11.5 -- The effect of capital gains taxation Chapter 12 -- Irrational Exuberance: Momentum Crashes and Speculative Bubbles § 12.1 -- Some speculation about speculative bubbles § 12.2 -- The behavioral origins of stock market momentum § 12.3 -- Momentum crashes § 12.4 -- Liquidity risk § 12.5 -- A simple model of informed and naïve trading Conclusion: The Monster and the Sleeping Queen.