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When relevant new information is received by the stock market, we typically observe a stock price movement. Using Bayes Theorem and your knowledge about present
When relevant new information is received by the stock market, we typically observe a stock price movement. Using Bayes Theorem and your knowledge about present value, explain to someone unfamiliar with the stock market about how new information changes the price of the stock. In your example, explain to someone how the announcement that Covid19 lockdowns will close restaurants indefinitely revise expected reported accounting numbers and in turn stock prices
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