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Berk and DeMarzo (2020) introduced us to some evidence that although in aggregate we believe that markets are efficient, when we examine individual behavior or

Berk and DeMarzo (2020) introduced us to some evidence that although in aggregate we believe that markets are efficient, when we examine individual behavior or even the behavior of people in groups, we find at times systemic departures from efficient market behavior. Highlight two biases (in bold)  and indicate what problems these biases may cause for the Capital Asset Pricing Model (CAPM).

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