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a) With regard to share markets, contrast adaptive expectations and rational expectations by outlining the features of each.(3 marks) Adaptive Expectations: Rational Expectations: b)In what

a) With regard to share markets, contrast adaptive expectations and rational expectations by outlining the features of each.(3 marks)

Adaptive Expectations:

Rational Expectations:

b)In what circumstances might the adaptive expectations model provide a reasonable forecast of price movements going forward?(1 mark)

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