EFB201 Financial Markets| Behavioural Finance

This is a critical essay about market efficiency TASK “The markets are so crazy that behavioural finance must be the best explanation of market behaviour. Afterpay was worth less than $13 a share eighteen months ago, but now it is worth $130 a share and a takeover offer of $39b has been made for the firm. What’s more it has never even made a profit. In addition, earlier this year we saw the strange happenings with the GameStop short squeeze episode. These happenings can’t be representative of an efficient market.” Your task is to write a critical essay evaluating the arguments for and against the Efficient Markets Hypothesis (EMH) and behavioural finance. You should include a discussion of the above quote.Discuss research (e.g. journal articles) and real world examples (e.g. behaviour of markets) that support or disagree with behavioural finance
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