Recent research has definitely established that stock prices display mean reversion over time.

Question

Quizplus · Accepted Answer

While some studies suggest that stock prices may exhibit mean reversion over certain periods, there is no consensus or definitive proof that stock prices always display mean reversion over time. Market efficiency, investor behavior, and economic factors contribute to the complexity of stock price movements, making it difficult to establish a universal pattern like mean reversion for all markets and time frames.

Recent Research Has Definitely Established That Stock Prices Display Mean