Behavioural Finance

Behavioural Finance

Behavioural finance takes the tenets of behavioural economics into the realm of decision-making by financial market participants. It exploresthe impact of their decision-making on markets and on the performance outcome of investments made. In the same way as behavioural economics is based on the notion that individuals are irrational, behavioural finance assumes markets are inefficient and that market participants have behavioural biases.

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