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S E32: The Financial Sector - Bonds, Stocks and Shares - should you or shouldn't you?

Think Like An Economist

CHAPTER

How to Predict a Stock's Price

Deefficient market hypothesis doesn't mean that a stock's price is always equal to its fundamental value. It means that it's impossible to predict if a stock is priced accurately based on publicly available information. This is why it's hard to actually make money trying to cherry pick the perfect stock. Men love to actively trade stock ofigi, but they lose money all the time.

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