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Explain the importance of understanding emotions in financial decisionmaking and analyse clearly any 3 applications of behavioural...

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Finance

Explain the importance of understanding emotions in financialdecisionmaking and analyse clearly any 3 applications ofbehavioural finance to financial markets. Also discuss theunderlying behavioural concepts in each of those applications

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Emotions and understanding of emotions is very important in financial decisionmaking process because the market reflects the value perceived by the individual participants in the market rather than the financial fundamental derived values of the securities Traditional finance has many assumptions regarding the market and the market participants    See Answer
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Explain the importance of understanding emotions in financialdecisionmaking and analyse clearly any 3 applications ofbehavioural finance to financial markets. Also discuss theunderlying behavioural concepts in each of those applications

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