The most established theory of stock prices relates a company's asset prices to the ________.

Question

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The most established theory of stock prices relates a company's asset prices to the future earning prospects of companies and future values of interest rates. This is because stock prices are primarily based on investors' expectations of a company's ability to generate future profits, which are influenced by interest rates that affect borrowing costs and overall economic growth. Past earnings and values are not considered as reliable predictors of future stock prices, and inflation rates are not typically seen as a major driver of stock prices in the long term.

The Most Established Theory of Stock Prices Relates a Company's