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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Rational investors:

1. tend to be either overly optimistic or overly pessimistic.

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