Research Article
Theoretical Approaches to the Application of Behavioral Finance in Investment Portfolio Management
- 1Oles Honchar Dnipro National University, Ukraine
International Journal of Psychology and Strategic Communication, Vol. 1, No. 2, pp. 187–196, 2025
Published 21 May 2025
https://doi.org/10.61030/QWBC9481
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Abstract
The article discusses theoretical approaches to the application of behavioral finance in investment portfolio management. The purpose of the work is to analyze the concepts and methods proposed within the framework of behavioral finance to improve investment portfolio management. The main cognitive biases of investors and their impact on portfolio formation are analyzed. Theoretical strategies for overcoming behavioral errors in asset selection and capital allocation are considered. The conceptual foundations of the role of financial consultants in the application of the principles of behavioral finance in portfolio management have been studied. The importance of taking behavioral factors into account in theoretical models for the development of investment products and services focused on the optimization of portfolio investments is substantiated.
Keywords: Behavioral finance, Cognitive biases, Portfolio optimization
Title
Theoretical Approaches to the Application of Behavioral Finance in Investment Portfolio Management
Journal / Publisher Details
Abstract
The article discusses theoretical approaches to the application of behavioral finance in investment portfolio management. The purpose of the work is to analyze the concepts and methods proposed within the framework of behavioral finance to improve investment portfolio management. The main cognitive biases of investors and their impact on portfolio formation are analyzed. Theoretical strategies for overcoming behavioral errors in asset selection and capital allocation are considered. The conceptual foundations of the role of financial consultants in the application of the principles of behavioral finance in portfolio management have been studied. The importance of taking behavioral factors into account in theoretical models for the development of investment products and services focused on the optimization of portfolio investments is substantiated.
Keywords
Behavioral finance, Cognitive biases, Portfolio optimization
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Cite this article
Alina Ribalko, & Tetiana Grynko (2025). Theoretical Approaches to the Application of Behavioral Finance in Investment Portfolio Management. International Journal of Psychology and Strategic Communication, 1(2). https://doi.org/10.61030/QWBC9481
Alina Ribalko, & Tetiana Grynko (2025) 'Theoretical Approaches to the Application of Behavioral Finance in Investment Portfolio Management', International Journal of Psychology and Strategic Communication, 1(2). Available at: https://doi.org/10.61030/QWBC9481
Alina Ribalko, & Tetiana Grynko. "Theoretical Approaches to the Application of Behavioral Finance in Investment Portfolio Management." International Journal of Psychology and Strategic Communication 1(2) (2025). https://doi.org/10.61030/QWBC9481
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