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Are financial markets rational?

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One of the great intellectual movements of recent decades has been the theory that financial markets are efficient, where the price of a share is the best reflection of the value of a company.

But a new book, The Myth of the Rational Market, documents the rise and fall of the efficient market theory.

The book's author Justin Fox, and Professor Patrick Minford from Cardiff Business School, debate whether the market theory is still applicable today.

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