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Politics : Politics for Pros- moderated

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From: LindyBill10/14/2013 8:07:54 AM
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3 U.S. Professors Are Awarded Nobel Prize in Economics
The work of Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller showed that stock prices tend to follow established rules in the long term.

The laureates have laid the foundation for the current understanding of asset prices. It relies in part on fluctuations in risk and risk attitudes, and in part on behavioral biases and market frictions There is no way to predict the price of stocks and bonds over the next few days or weeks. But it is quite possible to foresee the broad course of these prices over longer periods, such as the next three to five years. These findings, which might seem both surprising and contradictory, were made and analyzed by this year's Laureates, Eugene Fama, Lars Peter Hansen and Robert Shiller



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