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Stock Prices Reflect the Expected Size,risk,and Timing of Future Cash

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Stock prices reflect the expected size,risk,and timing of future cash flow of the company.


Definitions:

Biotic Potential

The upper limit of reproductive ability for an organism when conditions in the environment are perfect.

Environmental Resistance

The sum of environmental factors like predation, competition, and disease that limit the growth of populations and maintain ecosystem balance.

Resource Supplies

The availability of materials, goods, or services that can be used to support life, industry, or economic activity.

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