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Mean Reversion |
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Mean Reversion A strategy that involves purchasing an underperforming stock or another type of security and holding the position until the market rebounds. Notes: The mean reversion strategy is based on the mathematical premise that all prices will eventually move back towards the mean or average return. Thus, if a stock is underperforming, its price will move towards its average value when the market rebounds.How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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