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badd99 badd99
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What are some of the more important disagreements between the efficient market hypothesis and the findings of behavioral finance?
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Fundamentals of Investing


Edition: 14th
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andre9119andre9119
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More questions for this book are available here
For a market to be efficient, investors must react in a rational manner and respond promptly to market events. If investors base their decisions on misperceptions caused by overconfidence or emotional factors such as loss aversion, rather than objective information, they may either overreact or under react, and markets will not be as efficient as the EMH makes them out to be.

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