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Traditionally, the area of finance was governed by an assumption that individual actors made rational choices when it came to financial decisions and thus markets
Traditionally, the area of finance was governed by an assumption that individual actors made rational choices when it came to financial decisions and thus markets and the value of financial assets were based on rational analysis of financial data. This is no longer the case. Please explain and discuss what is meant by Behavioral Finance and how it impacts our understanding of finance. Please provide a discussion of at least 2 psychological biases that appear to impact investment decisions.
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