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overreaction hypothesis
o·ver·re·ac·tion hy·poth·e·sis


noun 
Definition:
 
finance idea that investors react too strongly: the theory that investors react too extremely to events, causing price movements that exceed expectations and necessitate price corrections
Encarta® World English Dictionary [North American Edition] © & (P)2009 Microsoft Corporation. All rights reserved. Developed for Microsoft by Bloomsbury Publishing Plc.
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