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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. O Rate of return will be lower O Current price of the stock will go down O Rate of return will be higher Current price of the stock will go up

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. O Rate of return will be lower O Current price of the stock will go down O Rate of return will be higher Current price of the stock will go up

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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. Rate of return will be lower O Current price of the stock will down go O Rate of return will be higher O Current price of the stock will go up Question 10 The forecast made using all available information for the price of a certain stock is $20. The realized price was $22. This shows that. O The error could have been predicted O The forecaster made a mistake O The forecast was a rational expectations forecast O The forecast was an adaptive expectations forecast 7,670 FEB 25 W
Transcribed Image Text: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. Rate of return will be lower O Current price of the stock will down go O Rate of return will be higher O Current price of the stock will go up Question 10 The forecast made using all available information for the price of a certain stock is $20. The realized price was $22. This shows that. O The error could have been predicted O The forecaster made a mistake O The forecast was a rational expectations forecast O The forecast was an adaptive expectations forecast 7,670 FEB 25 W
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