An overconfident manager misjudges the risk associated with a project and uses a dis- count rate that
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An overconfident manager misjudges the risk associated with a project and uses a dis- count rate that is too low. Suppose that the true situation is described by the situation in Question 4, but the manager believes the true situation to be the one described in Question 5. With this interpretation, contrast your analyses of these two problems.
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Overconfidence leads the firms managers to invest too early after having ...View the full answer
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Related Book For
Behavioral Corporate Finance Concepts And Cases For Teaching Behavioral Finance
ISBN: 9781259277207
2nd Edition
Authors: Hersh Shefrin
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