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Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:
Earnings Expectations
The anticipated earnings reported by a company, influencing its stock price and investor perception.
Information Processing Errors
Mistakes made in analyzing and interpreting information which can lead to incorrect conclusions and potentially suboptimal decision-making.
True Probabilities
The actual likelihood of an event occurring, as opposed to estimated probabilities based on theoretical models or assumptions.
Information Processing
The process of gathering, storing, and manipulating data to produce meaningful information.
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