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Team Favorite At the Money: Valuation Is an Exercise in Faith

Masters in Business

CHAPTER

The Role of Faith in Investing and Mean Reversion

This chapter explores the principle of mean reversion in finance, highlighting how overvalued and undervalued assets eventually realign with their fair value. It underscores the importance of faith in investing, illustrating the necessity for investors to trust their valuations while accepting the risks of potential losses.

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