For the range of theoretical approaches outlined in later chapters, it is important to emphasize that the divergent approaches are attempting to provide some answers to fundamental questions about the nature of economic behaviour. Are investors rational, maximizing machines easily described using mathematical models? Or does uncertainty and scarce information mean that psychological, subjective factors must predominate, making a mathematical approach redundant (or worse)? Knowledge of these debates is essential to a good understanding of how divergent modern investment theories have evolved.
KeywordsInterest Rate Share Price Animal Spirit Supply Price Demand Price
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