METHODS AND SYSTEMS FOR IDENTIFYING OVERVALUED, UNDERVALUED, AND CORRECTLY VALUED FINANCIAL RETURNS

摘要

Methods and systems for identifying and reporting an index of overvaluation and undervaluation of a financial instrument due to behavioral bias of traders, including but not limited to stocks, bonds, mutual funds, and options by producing a fundamental valuation index that equals zero when the actual returns equal the fundamental economic returns of the instrument as predicted by the model, and that does not equal zero when the returns are overvalued or undervalued, to enable an investor to formulate optimal investment strategies.