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Exactly, the fact that an assent went from $20 to $20,000 once doesn't tell us much. This is why in financial economics the variable of interest is returns, no
by lottin 4y ago
Exactly, the fact that an assent went from $20 to $20,000 once doesn't tell us much. This is why in financial economics the variable of interest is returns, not price. Statistical analysis of returns will tell us what return to expect if we hold the asset over a random time period of a certain length, which is what happens in practice.