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Suppose the fundamental value of stock could be $100 or $120 per share. Suppose your information leads you to expect that the fundamental value is
Suppose the fundamental value of stock could be $100 or $120 per share. Suppose your information leads you to expect that the fundamental value is $100, but you are not sure. Suppose you observe that the price of the stock reaches $110 per share. As a result, you decide to buy the stock and now expect its price per share to rise to $120. You have experienced
A. a regression result
B. an information cascade
C. the efficient markets hypothesis
D. a random walk
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