👉 "Overrationalized" is a financial term that refers to an investment or portfolio where the percentage of assets that are not meeting certain criteria (such as risk, return, or liquidity) is higher than what would be expected based on historical data. This can occur when there is too much volatility in the market, high levels of leverage, or poor risk management strategies. An example of overrationalized investment is a portfolio where investors have invested heavily in stocks that are trading at a premium to