Suppose that people expect a companys earnings to grow in the future at the same rate they

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Suppose that people expect a company’s earnings to grow in the future at the same rate they have grown in the past. Does this behavior satisfy the assumption of rational expectations? Explain.

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:40 AM

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Suppose that people expect a companys earnings to grow in the future at the same rate they

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Rational expectations rely on the best possible forecast at the time that the ex...View the full answer

Money Banking and Financial Markets

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