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_____ Assume(s)that a the Market,through Its Own Inherent Mechanisms,will Keep

question 33

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_____ assume(s) that a the market,through its own inherent mechanisms,will keep commerce in equilibrium.


Definitions:

Random Walk

A theory suggesting that stock market prices follow a random path, making it impossible to predict future price directions based on past information.

Efficient Markets Hypothesis

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Financial Risk

The possibility of losing money on an investment or business venture due to various factors including market fluctuations, interest rate changes, and credit risk.

Efficient Market Theory

A hypothesis stating that financial markets fully incorporate all available information into asset prices at all times.

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