Gordon Model

The Gordon Model, also known as the rational expectations hypothesis, is a model of financialmarkets that suggests that investors price stocks and other investments using an Expectations- Uncertainty Model (EUM).

The model is based on the idea that investors will update their expectations about the future based on recent events, which in turn will affect their investment decisions.

TheGordon Model has been used to help explain changes in stock prices over time and to predict future market trends.

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