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a) Briefly explain the concept of market efficiency. b) The textbook describes the field of Behavioral Finance as the study of how reasoning errors influence

a) Briefly explain the concept of market efficiency.

b) The textbook describes the field of Behavioral Finance as the study of how reasoning errors influence financial decisions. The textbook also contains a good discussion of how cognitive errors, biases and heuristics lead to irrational decisions by investors. What implications does all this have for stock market efficiency? Discuss.

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