The field of behavioral finance studies the effects of psychological and emotional factors on the economic decisions of individual and professional investors. The central objectives of behavioral finance are to explain why market participants make irrational systematic errors, and to investigate how other participants take advantage of the market inefficiencies that result.
The low volatility anomaly refers to a systematic behavioral mispricing of risk in equities. Several studies have shown that portfolios of low-volatility equities produce higher risk-adjusted returns than portfolios of high-volatility ones.
Christiaan Huygens (1629-1695) was a prominent enlightenment-era physicist, mathematician, and inventor. He is considered one of the first theoretical physicists, and was a strict adherent to the scientific method.