Abstract This paper constructs theoretical model based on investor sentiment asset pricing. It proves that investor sentiment has systematic affect on risk asset pricing. Stock price can be decomposed into rational and sentiment part.Investor sentiment causes prices deviate from the intrinsic value.It will lead to high volatility and price bubble. It provides feasible research directions for construction information dynamic sentiment asset pricing model and the continuous time sentiment asset pricing model. It provides feasible research directions for constructing behavioral portfolio based on investor sentiment and fuzzy mathematics .This research for developing sentiment composite index and financial market risk management has important theoretical and realistic significance.
2014, Vol. 31 
