Suppose that you are a trader at the stock market. T-Mobiles stocks currently trade at $45 and

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Suppose that you are a trader at the stock market.

T-Mobile’s stocks currently trade at $45 and the expected return is 9%. You have information that leads you to believe that by the end of year the company’s returns will be around 40%. Are your expectations optimal? How will your behavior influence the stock price?

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