If a stock price were mean reverting or followed a path-dependent process there would be market inefficiency.

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If a stock price were mean reverting or followed a path-dependent process there would be market inefficiency. Why is there not market inefficiency when the short-term interest rate does so?

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 12:31 PM

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If a stock price were mean reverting or followed a path-dependent process there would be market inefficiency.

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