Give Two Explanations Why Stock Prices Might Deviate from Their

question 1

Essay

Give two explanations why stock prices might deviate from their fundamental values.

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Definitions:

Authority

The ability or prerogative to direct, decide, and demand adherence.

Power

The ability to influence or control the behavior of people or the course of events.

Coercive Power

Coercive power is the capacity to control others through the fear of punishment or the imposition of unpleasant consequences.

Jeffrey Bezos

He is the founder of Amazon.com, Inc., and a pioneering entrepreneur known for his significant contributions to e-commerce, space exploration, and various technological innovations.