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Investors or advisors focus on customer needs to identify the best investment options while considering opportunity costs and market uncertainties. Investors often react in an irrational manner and respond promptly to market events or information. If investors base their decisions on behavioral finance, behavioral psychology, or heuristics and biases, it may result in investment misperceptions rather than objective information filtering. Acting in this manner will cause investors to make irrational decisions.

Discuss how efficient market hypothesis, heuristic behaviors, and biases shape the investment decision-making process in formulating an objective portfolio.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92414835

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