People don't have straight forward mathematically rational utility curves. High risk returns are over priced in all markets. High beta stocks are overvalued relative to low beta stocks, for example. Security is also "irrationally" over valued (treasuries, put options).
You could say this is irrational, or you could just say it's the way people are.
You could say this is irrational, or you could just say it's the way people are.