Behavioral finance tells us that investors, social entrepreneurs and traditional finance all deal with the real-world complexity of financial markets by relying on heuristics and models in which people are self-interested and rational.

Question

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Behavioral finance challenges the assumption that individuals are always self-interested and rational. It recognizes that humans are subject to biases and emotions that can influence their decision-making in financial markets.

Behavioral Finance Tells Us That Investors, Social Entrepreneurs and Traditional