(20%) The global financial crisis of 2008 increased uncertainty over whether capital markets are efficient....

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(20%) The global financial crisis of 2008 increased uncertainty over whether capital markets are efficient. As a consequence, behavioral finance has become a topic of considerable interest. Contemporary issues reviews the anomaly of black swan effects in relation to investor behavior. Questions:

a. What is Black Swan event?

b. How do black swan events illustrate the limits of capital market theory?

c. Why was the global financial crisis labelled a black swan event?

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