1.1. Your brother calls you on the phone telling you that Google's share price has fallen by...

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1.1. Your brother calls you on the phone telling you that Google's share price has fallen by about 25% over the past few days. Now you can own one small slice of Google for only $430 a share

(the price on the day this question was written).

Your brother says he is pretty sure the stock is going to head back up to $600 very soon and you should buy.

Should you believe your brother? Hint:

Remember someone is selling shares whenever someone else is buying.

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Related Book For  book-img-for-question

Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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