The theory of behavioral finance vs. the theory of the efficiency of financial markets
Journal Title: مجلة البشائر الاقتصادية - Year 2017, Vol 3, Issue 1
Abstract
The aim of this article is to illustrate the theory of efficient financial markets through a review of the most basic assumptions, and clarify its limitations in the interpretation of the price distortions financial assets, in another words, its consists to highlight the principles of behavioral finance theory and the basic assumptions to interpret the behavior of individuals and its reflection on trading in the financial market. And the main conclusion is that the traditional theory is unable to explain the price changes in the financial markets for the mismatch basic hypotheses with reality.
Authors and Affiliations
Benzair Mebarek
Keywords
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