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22 An analyst forecasts that a stock will increase in price by 10% in one year, from $50 to $55. The forecast was based on
22 An analyst forecasts that a stock will increase in price by 10% in one year, from $50 to $55. The forecast was based on all available information. New information arrives the day after the forecast was made. When that information is fully incorporated into the forecast, the rate of growth will decline to 5% half of what was originally predicted. If the analyst suffers from anchoring bias, which of the following would be closest to his revised forecast? A. S52.00. B. $54.00 C. $57.50
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