Question
If the actual return on an investment is different from the expected return, then it is likely that: When investors estimated the expected return they
If the actual return on an investment is different from the expected return, then it is likely that:
When investors estimated the expected return they correctly weighed all of information that they believed would bear on the investment. | ||
Interest rates remained unchanged after the expected return was computed. | ||
Some unanticipated information about the investment was revealed after the expected return was computed. | ||
Investors didn't use all relevant information that was available when computing the expected return. | ||
Even though the expected return was incorrect, the normal return was estimated accurately. |
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