1. tend to be either overly optimistic or overly pessimistic.
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Business, 16.04.2020 00:23 suzymott1562
Rational investors:
1. tend to be either overly optimistic or overly pessimistic.
2. cause stocks with similar risks to have similar expected returns.
3. always tend to undervalue stocks.
4. must include all investors if the market is to be efficient.
5. are all arbitrage traders
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Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?
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Rational investors:
1. tend to be either overly optimistic or overly pessimistic.
1. tend to be either overly optimistic or overly pessimistic.
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