In models with subjective beliefs, the dynamics of investor beliefs are central to explaining asset price movements. Allowing subjective beliefs to deviate from full-information rational expectations
We examine subjective risk premia implied by return expectations of individual investors and professionals for aggregate portfolios of stocks, bonds, currencies, and commodity futures. While in-sample
We use measures of neural activity provided by functional magnetic resonance imaging (fMRI) to test the "realization utility" theory of investor behavior, which posits that people derive utility direc
