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

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Briefly explain the concept of market efficiency. 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 heuristies lead to irrational decisions by investors. What implications does all this have for stock market efficiency? Discuss 1

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