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QUESTION 9 Mean reversion refers to the observation that O stock prices overact to news announcements. stocks prices are more volatile than fluctuations in their

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QUESTION 9 Mean reversion refers to the observation that O stock prices overact to news announcements. stocks prices are more volatile than fluctuations in their fundamental value would predict O stocks with low returns are likely to have high returns in the future. stocks with low returns are likely to have even lower returns in the future

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