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Conventional Finance Theory
A framework in economics that explains the behavior of financial markets, including the dynamics of assets and securities pricing, investment portfolios, and market mechanisms.
Behavioral Finance
An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.
Rational
Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.
Irrational
Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.
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