Behavioral finance draws on psychology, economics, and finance to understand how human beings make financial decisions. Unlike traditional finance that assumes people are rational agents always maximizing utility, this behavioral finance recognizes that many human behaviors are irrational in the sense that they're often influenced by emotions and cognitive biases and social forces.

Behavioral finance draws on psychology, economics, and finance to understand how human beings make financial decisions. Unlike traditional finance that assumes people are rational agents always maximizing utility, this behavioral finance recognizes that many human behaviors are irrational in the sense that they're often influenced by emotions and cognitive biases and social forces.

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