The Duke/CFO study on financial executives forecasts for the 10-year horizon features a negative correlation between forecasts
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The Duke/CFO study on financial executives’ forecasts for the 10-year horizon features a negative correlation between forecasts of return and forecasts of volatility. Discuss this property in light of the finding that the correlation between executives’ forecasts of the risk premium and volatility forecasts is positive.
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This pattern suggest that when expected volatility is high expected returns are low but the expected ...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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