Can a person with rational expectations expect the price of a share of
QUESTION
Can a person with rational expectations expect the price of a share of Google to rise by 10% in the next month?
it implies that the person is expecting the return of more than 100% in a year. This will mean that there is some information about Google which can provide a profit opportunity in the market. However such information would have been eliminated in the efficient market.
ANSWER:
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