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The Theory of Behavioral Finance Has Replaced the Efficient Market

question 25

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The theory of behavioral finance has replaced the efficient market hypothesis regarding behavior in the stock market.


Definitions:

Intrusive Thoughts

Unwanted, involuntary thoughts, images, or ideas that can be distressing or disturbing.

Panic Attacks

Sudden episodes of intense fear or anxiety that trigger severe physical reactions when there is no real danger or apparent cause.

Aftermath

The consequences or effects that follow a significant event or disaster.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension.

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