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What are the two key assumptions of behavioral asset pricing theory? I. Rational investors collect information and compete for profits II. Any temporary mispricing would
What are the two key assumptions of behavioral asset pricing theory? I. Rational investors collect information and compete for profits II. Any temporary mispricing would be arbitraged away III. Irrationality: Investors make mistakes when forming expectations or making investment decisions IV. The mispricing might not be quickly eliminated because of limits to arbitrage
a. III and IV
b. II and IV
c. I and II
d. I and III
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