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In Business / High School | 2025-07-07

What does rationalizing irrationality mean in markets?
A. Correcting mispricing
B. Avoiding investment biases
C. Justifying irrational behaviors as reasonable
D. Eliminating speculation

Asked by koley18

Answer (1)

Rationalizing irrationality in markets refers to the justification of seemingly irrational behaviors by investors or analysts. This often involves explaining why market participants might behave in ways that differ from expected rational behavior, particularly during speculative events. It is not the same as correcting mispricing or eliminating speculation, but rather an exploration of the psychological factors influencing market choices. ;

Answered by GinnyAnswer | 2025-07-07

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