Behavioral Finance - Deepstash
Behavioral Finance

Behavioral Finance

The efficient market hypothesis is built on the idea that investors are rational. Rational investors are individuals who make decisions that maximize their wealth, but are constrained by their individual risk tolerance.

Behavioral finance questions the idea of the rational investors, highlighting that there are at least four factors causing irrational investor behavior:

  • Overconfidence
  • Biased Judgments
  • Herd Mentality
  • Loss Aversion

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thomgutie

Academic librarian

A classic guide that blends history, economics, market theory, and behavioral finance to offer practical and actionable advice for investing and achieving financial freedom.

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