How rational are we? Are we as rational as we think we are?
17 June 2021
By Rachel Barlow
Standard finance theory is designed to provide mathematically elegant explanations for financial scenarios based on assumptions of perfect rationality, perfect self-interest, and perfect information. Unfortunately, real-life does not quite operate with precise, elegant conditions. Humans do not always make simple, rational decisions or behave objectively; particularly in times of stress or challenge.
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