How Biases Can Affect Your Investment Decisions, Part 2

In the traditional finance world, it is assumed that every investor is objective and makes rational decisions, thus making the markets efficient. But history shows that investors tend to make irrational decisions due to a variety of different biases and tendencies, which in turn make the markets inefficient. This is one of the key concepts in behavioral finance, and this audio series covers some of the most prevalent biases we see today.

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