Behavioral finance and traditional finance

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1. Gold has become one of the most profitable investment for investors. While price of the gold is increasing demand for gold continued to increase that was the main reason of increasing price of the gold.

a. Using behavioral finance and traditional finance arguments discuss which one of them explains the price increase and demand increase for gold.

b. Do you think that this could be a bubble which could end with burst? Discuss why yes or not by using the definition of bubbles.

Reference no: EM132535239

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