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Several Writers Have Helped to Popularize the Notion That Stock

question 26

Essay

Several writers have helped to popularize the notion that stock prices follow no discernible pattern.What is meant by a random walk, and how can you explain why people continue to invest in stocks if the random walk theory is correct?

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Definitions:

Defence Mechanism

Psychological strategies employed by individuals to cope with reality and maintain self-image.

Regression

A defense mechanism leading an individual to revert back to a previous stage of development in their behavior, thoughts, or feelings.

Unconsciously

Actions or thoughts that occur without conscious awareness or control, often stemming from the subconscious mind.

Oral Stage

The first stage in Freudian psychosexual development, occurring in the first year of life, where pleasure is centered around oral activities such as sucking and biting, playing a crucial role in the development of future relationships and behavior patterns.

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