Question: An optimal forecast made using rational expectations provides a certain rate of return for a stock. When new information directs to a lower forecast price
An optimal forecast made using rational expectations provides a certain rate of return for a stock. When new information directs to a lower forecast price for the stock
Group of answer choices
Current price of the stock will go down
Rate of return will be lower
Current price of the stock will go up
Rate of return will be higherAn optimal forecast made using rational expectations provides a certain rate of return for a stock. When new information directs to a lower forecast price for the stock
Group of answer choices
Current price of the stock will go down
Rate of return will be lower
Current price of the stock will go up
Rate of return will be higher
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
