Behavioral finance challenges market efficiency, revolutionizing asset pricing strategies.
The article reviews different ideas about how the stock market works. It looks at theories that say the market is efficient, as well as studies that show evidence against this idea. The article also talks about behavioral finance, which looks at how people's emotions and biases affect stock prices. The researchers found that there are gaps in the efficient market theory, and suggest that behavioral finance could be a better way to understand how assets are priced. They believe that by studying behavioral finance more, we can improve our understanding of how the stock market works.