Lock-in of extrapolative expectations in an asset pricing model
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Lock-in of extrapolative expectations in an asset pricing model

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Published by Federal Reserve Bank of San Francisco in [San Francisco] .
Written in English

Subjects:

  • Capital assets pricing model.,
  • Stock price forecasting -- Mathematical models.,
  • Rational expectations (Economic theory)

Book details:

Edition Notes

StatementKevin J. Lansing.
SeriesFRBSF working paper ;, 2004-06, FRBSF working paper (Online) ;, 2004-06.
Classifications
LC ClassificationsHB1
ID Numbers
Open LibraryOL3477422M
LC Control Number2005617122

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Downloadable! This paper examines an agent's choice of forecast method within a standard asset pricing model. A representative agent may choose: (1) a fundamentals-based forecast that employs knowledge of the dividend process, (2) a constant forecast that is based on a simple long-run average, or (3) a time-varying forecast that extrapolates from the last observation. Kevin J. Lansing, "Lock-in of extrapolative expectations in an asset pricing model," Working Paper Series , Federal Reserve Bank of San Francisco, revised Handle: RePEc:fip:fedfwp   KEVIN J. LANSING, LOCK-IN OF EXTRAPOLATIVE EXPECTATIONS IN AN ASSET PRICING MODEL, Macroeconomic Dynamics, /S, 10, 03, (). Crossref Steven A. Sharpe, How Does the Market Interpret Analysts' Long-Term Growth Forecasts?, Journal of Accounting, Auditing & Finance, 20, 2, (), ().Cited by: KEVIN J. LANSING, LOCK-IN OF EXTRAPOLATIVE EXPECTATIONS IN AN ASSET PRICING MODEL, Macroeconomic Dynamics, /S, 10, 03, (). Crossref JIANPING MEI and MICHAEL MOSES, Vested Interest and Biased Price Estimates: Evidence from an Auction Market, The Journal of Finance, 60, 5, (), ().Cited by:

ECONOMICS--Kevin Lansing: Lock-in of extrapolative expectations in an asset pricing model. p.m., Social Sciences and Humanities Building. FOOD SCIENCE AND TECHNOLOGY--Janna Smith: Genetic taste markers, food preferences and dietary practices of children; Michael Gabel: Energy reduction and improved quality attributes in onion. 15 Writers Background. The team of experts have worked as professional academic writers for the top UK and US academic writing companies for at least 10 years. Between them, they are qualified in a huge range of subjects and topic areas. Finance. Online Encyclopedia. Finance: What is what? Everything you always wanted to know. Home» Finance. Capital asset pricing model (CAPM) An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification.

Economy. Online Encyclopedia. General Agreement on Tariffs and Trade. General average. Investor Psychology and Asset Pricing. The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. Resource Type: Article, Working Paper Recommended By. A model, such as the Capital Asset Pricing Model (CAPM), that determines the required rate of return on a particular asset. ASSET SUBSTITUTION (Financial Definition) A firm’s investing in assets that are riskier than those that the debtholders expected. Asset pricing model: A model for determining the required rate of return on an asset. Asset substitution: A firm’s investing in assets that are riskier than those that the debtholders expected. Asset substitution problem: Arises when the stockholders substitute riskier assets for the firm’s existing assets and expropriate value from the.