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Financial Library

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Equity Market Anomalies: A Review of Behavioral Finance and Alternatives

Shelf score 8.0 / 10

On Equity Market Anomalies: A Review of Behavioral Finance and Alternatives · Bender et al. · Research Affiliates

Published 23 March 2026

This work provides a comprehensive review of equity market anomalies and factor premiums.

Overview

Published in 2018 by Research Affiliates, this book by Bender et al. delves into quantitative finance, focusing on excess returns, factors, and pricing anomalies in equity markets. It offers a data-driven analysis, particularly highlighting the size premium and its implications for investors.

The text is geared towards practitioners such as analysts, portfolio managers, and quants, making it a practical resource for those looking to implement factor analysis in their investment strategies. The authors aim to equip readers with insights into the rapid evolution of factors and how they can be leveraged for better investment decisions.

By area & interest

  • Comprehensive Factor Analysis

    The book provides an in-depth examination of various equity market anomalies, offering a thorough understanding of factor premiums and their implications for investment strategies.

  • Practical Implementation

    It emphasizes practical applications of factor analysis, making it a valuable resource for practitioners looking to apply theoretical concepts in real-world scenarios.

  • Target Audience

    Designed for quants and factor investors, the book caters specifically to those who seek to enhance their understanding of equity markets through a quantitative lens.

Basis of this assessment

The assessment is based on the catalogue description and the identified audience and topics.

Strengths

The book excels in its comprehensive review of equity market anomalies and its focus on practical implementation of factor analysis, making it a useful tool for practitioners.

Limitations

The rapid evolution of factors may present challenges in keeping the content fully up-to-date, which could limit its long-term applicability.

Ideal reader

This book is ideal for analysts, portfolio managers, and quantitative investors who are looking to deepen their understanding of equity market anomalies and factor investing.

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