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The topic of Corporate Finance exclusively addresses the funding sources and capital structure of a particular firm. As investors, we are apt to repeat the very same mistakes. Finance also comprises the notion of Bonds and derivatives.

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Behavioral finance is about attempting to understand biases in human behavior in regards to money. Other academics also have postulated that overconfident investors won’t learn from their mistakes since they don’t see it like a bias which affects their decision making. As an academic subject, psychology utilizes numerous diagnostic instruments and procedures in order to learn about the human mind and human behavior.

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