Bubbles in stock markets The stock markets movements be gener bothy consistent with rational behaviour by giftors. at that tush is no need to invoke fads, animal spirits, or senseless exuberance to understand the movements of the market. Discuss in relation to the develop technology bubble and its collapse. Introduction In a short efficient market, it is assumed that only investors have access to only available information of future stock prices, dividend payoffs, inflation rates, bay rates and all other economic factors that affect the puzzle in prices of stocks.
All inves tors are perfectly rational and film to invest in stocks which will have a validatory payoff. Therefore, all financial assets mustiness always be priced correctly. whatever observable deviations from the correct pricing for stocks, according to the efficient market theory, must be an illusion, and no gains can be make from arbitrage. In short, all stock prices should reflect genuine and fundame...If you insufficiency to determine a full essay, order it on our website:
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