New answers tagged

0 votes

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. ...
0 votes

Is there a difference between heterogeneous expectations and heterogeneous cost of capital? How are assets priced in these situations?

1. 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 ...
2 votes

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 ...

Top 50 recent answers are included