New answers tagged asset-pricing
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Difference between Trader Behavior and Analysis/Inference
There is no conceptual difference between momentum trading and positive feedback trading. There are funds trading momentum strategies that incorporate herding metrics on an individual security level.
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Is there a difference between heterogeneous expectations and heterogeneous cost of capital? How are assets priced in these situations?
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If we are navigating in the CAPM world deep enough, we can abandon whether the investors have homogenous expectations or not. It is irrelevant, even in the condition of homogenous investment ...
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Is there a difference between heterogeneous expectations and heterogeneous cost of capital? How are assets priced in these situations?
Yes, there is a difference between "heterogeneous expectations" and "heterogeneous cost of capital" (of investors). Usually, while the first is about something in future, the ...
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