Behavioral finance and classical finance based on utility maximization appear to be mutually exclusive schools of thought. Despite the fundamental difference, we show that behavioral finance also has a linear relation between risk and return. This relation is obtained without the assumptions of market equilibrium, rational expectations, a specific utility function and the market portfolio. In t...

Kabbalah and its Tree ofLife integrate the cognitive, behavioral/emotional and action levels of human existence, explaining the relations between these and their unity. This makes it an ideal framework for behavioral economics and finance where cognitive and emotional biases and heuristics play a central role. In Burstein and Negoita [9], we began to develop a Kabbalah system theory, modeling t...