Th??ff?ctiv? mark?tplac? th?ory r?main?d major pr?s?nt?d using Markowitz now day 1952 in was nam?d by famain th? y?ar 1970 which assum?d that th? financial mark?t includ? allinformation r?garding th? public and ass?rt th? shar? pric?s show all informationthat is r?l?vant to it.

In th? fi?ld of financ? a lot of ?mphasis is th?r? onincr?as? is still ?vid?nt th?r? in substantial anomali?s in financial mark?ts.It shows that th? principl? of rational b?haviour on ?MH may b? fail?d r?s?arch?rshav? tak?n k??n int?r?st in this ar?a and th?y ar? looking for and working toinclud? human b?haviour and its impact on this th?ory. According to th? r?c?ntth?ory th? pr?s?nt assumption hav? b??n prov?d inconsist?nt of th? individual b?haviour.Thus th? anomali?s of th? r?c?nt portfolio mod?ls hav? mad? th? d?v?lopm?ntproc?ss much fast?r what is call?d b?havioural financ?. Th? b?havioural financ?lit?ratur? can b? dividing into two typ?s, th? id?ntification of anomali?s th? ?ffici?ntmark?t hypoth?sis that b?haviour mod?ls may ?xplain and th? id?ntification of undivid?dinv?stors b?haviours or bias?d old ?conomic th?ori?s of inconsist?ncy inrational b?haviour.

B?havioural financ? thus chall?ng?s th? ?ffici?nt mark?tpoint of vi?w that how th? inv?stors p?rc?iv? th? alr?ady availabl?information. It prov?s h?lpful in und?rstanding th? prioriti?s of individual’sinv?stors. It h?lps th? inv?stors to think pragmatically and mak? d?cisionproving fruitful for th?ir busin?ss.  D?fin?dth? b?haviours financ? as th? study of th? influ?nc? of psychology on th? b?haviourof financ? practition?rs and th? subs?qu?nt ?ff?ct on mark?ts.

B?haviour financ?aims at finding th? r?asons how and why th? mark?t is in ?ffici?nt and this mak?sthis int?r?stingB?haviouralr?s?arch?r barb??rs and thaalor hav? d?scrib?d b?havioural financ? r?s?arch inth? following way ”w? hav? now b?gin th? importanc? job of trying to docum?ntand und?rstand how inv?stors both amat?urs and prof?ssionals mak? th?irportfolio choic?s until r?c?ntly such r?s?arch was notably abs?nt from th? r?p?rtoir?of financial ?conomists p?rhaps b?caus? of th? mistak?n b?li?f that ass?tspricing can b? mod?ll?d without knowing anything about th? b?haviour of th? ag?ntin th? ?conomy.Thispap?r puts forth a qu?stion what can b? l?arnt by studying b?haviour financ??In ord?r to ask such qu?stion this r?s?arch pap?r r?vi?ws th? ?ffici?ncy ofmark?t hypoth?sis th?ory and th?n ?xplains th? prosp?ct th?ory. Th? oth?r s?ctionshows diff?r?nt psychological and sociological principl?s that consist of th?basics of th? b?havioural financ?.Th??ffici?nt mark?t hypoth?sis foundation and limits standard financ? is th? bodyof knowl?dg? built on th? pillars of random principl?s of Modigliani and mill?rth? portfolio principl? of Markowitz th? portfolio principl?s of Markowitz th?capital ass?t pricing th?ory of sharps and th? option pricing th?ory of black Schol?sand M?rton so th? ?ffici?nt mark?t hypoth?sis is th? most vital financial th?ory

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