DEPENDENCE
10 May 2016 By PDSNETIn modern portfolio theory the central concept is that share prices are impossible to predict because there is no "dependence" between today's price and yesterday's price. In other words share prices move at random. The problem with this is that, by definition, a random series is impossible to predict and if this is true all forms of share market analysis are a waste of time. Technicians or chartists believe that there are extensive patterns in share prices and volumes which have their origin in the behavioural characteristics of investors as a group. (Group investor behaviour)
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