| ABSTRACT |
The Efficient Market Hypothesis (EMH) serves as a key benchmark for understanding price dynamics and risk-return relationships. Yet, empirical findings reveal that actual markets frequently diverge from the idealized notions of rationality and frictionless trading. This paper reviews classical EMH theory alongside contemporary behavioural studies, demonstrating the impact of psychological biases like overconfidence, herding, loss aversion, and anchoring on investor behaviour. These biases contribute to market anomalies and inefficiencies, especially in uncertain conditions and emerging digital markets. Ultimately, the findings suggest that market efficiency is adaptive, providing critical insights for investors, educators, and policymakers involved in financial decision-making. |
| AUTHOR |
Aradhana Tiwari, Dr. Prabha Singh
Research Scholar, JSPM University, Pune, India
Research Guide, JSPM University, Pune, India |
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