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A nascent field combining theory and methodology from neuroscience and finance, neurofinance takes what we know at the neurobiological level and applies it to investor decision-making. It aims to propose new theories about investor behavior and to test existing theories that are difficult to test with behavioral data alone but can however be tested with a combination of behavioral and neural data. The path taken in recent research has uncovered neurobiological foundations for well-known anomalies in investor behavior, revealing enticing opportunities for improving investor decision-making in the future.
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