This is an extremely impoverished framework for thinking about financial markets.
It's good enough.
Knowing about things like risk will tell you about the costs and benefits with higher precision. It will explain somewhat why there's lots of people involved in a market, and not just a couple of people that control the entire thing and work out the prices using other methods.
All that uncertainty makes the market difficult to predict. But all you really need to know is that regardless of how easy or hard it is to guess how a business will do, the market will ensure that you're competing with other people who are really good at that sort of thing, and outguessing them is hard.
It's good enough.
No, I don't think so.
But all you really need to know is that regardless of how easy or hard it is to guess how a business will do, the market will ensure that you're competing with other people who are really good
This can be applied to anything from looking for a job to dating.
So, no, that's not all you really need to know.
Another month, another rationality quotes thread. The rules are: