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We often hear that information is crucial to investors in the financial market. In about 400 words, comment on the role of information in asset
We often hear that information is crucial to investors in the financial market. In about 400 words, comment on the role of information in asset pricing models. (Hint What information do the models depend on, which model has stronger assumptions, and how so? What is the prediction of each of these models regarding investor demand for information in equilibrium: should an individual investor try to get information if doing so is costly? Comment on the assessment in light of the efficient market hypothesis.)
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