In sharp contrast to the efficient market hypothesis (EMH), proponents of behavioral finance believe that stock market i

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answerhappygod
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In sharp contrast to the efficient market hypothesis (EMH), proponents of behavioral finance believe that stock market i

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In sharp contrast to the efficient market hypothesis (EMH),
proponents of behavioral finance believe that stock market
investors frequently make irrational decisions and thus, stock
prices are not always reflecting true values of the
companies.
1. Why do investors make irrational or inefficient decisions?
(i.e., what are the causes?)

2. Discuss any incidents or phenomena that are driven by investors’
irrational or inefficient behaviors in the stock market.
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