TESTING THE HYPOTHESIS OF AN EFFICIENT MARKET IN TERMS OF INFORMATION – THE CASE OF THE CAPITAL MARKET IN ROMANIA DURING RECESSION

This paper is trying to test the hypothesis of efficient market (EMH Efficient Market Hypothesis), the case of capital market in Romania during the economic financial crisis. According to the purpose in view our research is aiming at testing the hypothesis of random walk of stock exchange indexes BET, BET-C, BET_FI of Bucharest Stock Exchange. In this respect we will enforce statistic tests to see if the capital market in Romania is efficient in a weak form during this period.efficient capital market, random walk, stationary tests, normal distribution

A BEHAVIORAL APPROACH TO THE GLOBAL FINANCIAL CRISIS

The purpose of this paper is to reflect the behavioral biases that led to this global financial crisis. The paper presents briefly the real causes of the crisis (structural and cyclical factors) and puts a greater accent on the behavioral factors. The authors considered to structure the paper in three main pillars: behavioral factors, the collapse of ethical behavior and the role of behavioral finance in studying, regulating and assessment financial risks. The first pillar consists in a brief presentation of the behavioral factors such as: optimism and wishful thinking, overconfidence, greed, regret, pessimism, passing the responsibility, herding - groupthink, anchoring, representativeness biases, informational cascades and "this time is different" syndrome. The second pillar of the paper presents the collapse of ethical behavior that led to the global financial crisis: predatory lending practices, inappropriate compensation schemes, rating agencies behavior, corporate governance reforms and financial institutions opacity in their reporting. The third pillar presents the mismanagement of risk and regulations that led us into this global mess. The paper concludes with the need of integrating biases of human behavior into regulations in order to make them more effective and people become less financially vulnerable.behavioral finance, irrationality, regulation, crisis

BEHAVIORAL BIASES IN TRADING SECURITIES

The main thesis of this paper represents the importance and the effects that human behavior has over capital markets. It is important to see the link between the asset valuation and investor sentiment that motivate to pay for an asset a certain prices over/below the intrinsic value. The main behavioral aspects discussed are emotional factors such as: fear of regret, overconfidence, perseverance, loss aversion ,heuristic biases, misinformation and thinking errors, herding and their consequences.Behavioral finance, Investor psychology, Irrationality, market efficiency, Behavioral biases, limits to arbitrage

New Analytical Stress Formulae for Arbitrary Time Dependent Thermal Loads in Pipes

Analytical solutions with several new features have been developed for temperature and elastic thermal stress distributions for a hollow circular cylinder under sinusoidal thermal transient loading at the inner surface. The approach uses a finite Hankel transform in a general form for any transient thermal loading for a hollow cylinder. Using the properties of Bessel functions, an analytical solution for temperature distribution through wall thickness was derived for a special case of sinusoidal transient thermal loading on inner pipe surface. The solutions for associated thermal stress components were developed by means of the displacement technique. To the authors’ knowledge, this is first time a complete set of such analytical expressions has been openly published.JRC.F.4-Nuclear design safet