The actual and expected prices of an asset will be equal. The actual price of an asset reflects only information on past returns on the asset. The expected price of an asset incorporates only information on past returns on the as Above-normal returns on stock investment can be expected by investors who possess insider information. Are wealthy enough to hold the stock of many different companies in the portfolios. Are risk seeking concentrate their investments in one or two stocks. Suppose that Google announces that is profit for the third quarter of 2016 was dollar 1.6 billion. A declines. The best explanation of this is market participants expected Google's profits to be greater than dollar 1.6 billion for the third market participants expected Google's profits to be greater than dollar 1.6 billion for the third quarter the stock market is not an efficient market