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Behavioral Finance Not To Be Ignored

One of the pillars of modern portfolio theory is the efficient market hypothesis (EMH), a theoretical framework for understanding how securities are valued in the marketplace. According to the EMH, the market is composed of well-informed and rational investors simultaneously making decisions that drive assets to their true value. Competing theories and volumes of research suggest, however, that the

One of the pillars of modern portfolio theory is the efficient market hypothesis (EMH), a theoretical framework for understanding how securities are valued in the marketplace. According to the EMH, the market is composed of well-informed and rational investors simultaneously making decisions that drive assets to their true value.

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