Klondike
@klondike
The efficient market hypothesis (EMH) suggests that asset prices reflect all available information. According to EMH, consistently outperforming the market is challenging. Investors should consider whether they believe in market efficiency when choosing strategies.
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Appel
@appel
The Dividend Discount Model (DDM) values a stock based on its future dividend payments. It helps investors assess whether a stock is overvalued or undervalued. DDM is particularly useful for evaluating dividend-paying stocks.
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Derszki
@derski
The risk-return tradeoff is the balance between the potential return of an investment and its risk. Higher returns usually come with higher risk, and vice versa. Understanding this tradeoff helps investors make informed decisions based on their risk tolerance.
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