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

Authority is the power or right to give orders, make decisions, and enforce obedience.

Compliance

The act of following a request, order, or command; often studied in social psychology.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present, often due to a diffusion of responsibility.

Emergency

An emergency is a sudden, unforeseen situation that requires immediate action to prevent or minimize harm or disaster.