× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
2
A
2
g
1
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
kolitchko kolitchko
wrote...
Go to Answer
Posts: 564
Rep: 0 0
7 years ago
Which of the following statements is TRUE of rational expectations?
A) Rational expectations forecasts are always correct.
B) For a trader with rational expectations, the expectation of an asset's price equals the optimal price forecast.
C) If traders have rational expectations, any announcement by a company will have an effect on its stock price, even if the market was already aware of the facts being announced.
D) If a trader really has rational expectations, he or she will always earn a greater than normal return on his or her financial portfolio.
Textbook 
Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
Authors:
Read 116 times
1 Reply
Replies
Answer verified by a subject expert
vehmeinvehmein
wrote...
#1
Top Poster
Posts: 714
Rep: 1 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

kolitchko Author
wrote...

7 years ago
Thanks
Liarec
wrote...

Yesterday
You make an excellent tutor!
ky
wrote...

2 hours ago
this is exactly what I needed
New Topic      
Quick Reply
Bold
Italic
Underline
Strikethrough
Subscript
Superscript
Insert Math Equation
Font Name
Font Color
Align left
Center
Align right
Bullet list
Numbered list
Insert a horizontal rule
Insert a table
Insert a Quote
View source
Explore
Post your homework questions and get free online help from our incredible volunteers
  2062 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 765
  
 1303
  
 346
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 861
Previous poll results: Which of the following is the best resource to supplement your studies: