DeBondt and Thaler Believe That High P/E Result from Investors

question 38

Multiple Choice

DeBondt and Thaler believe that high P/E result from investors'

• A) earnings expectations that are too extreme.
• B) earnings expectations that are not extreme enough.
• C) stock-price expectations that are too extreme.
• D) stock-price expectations that are not extreme enough.

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Definitions:

Contraceptives

Contraceptives are methods or devices used to prevent pregnancy as part of family planning, including barriers, hormonal pills, implants, and IUDs.

Private Matter

An issue or subject that is intended to be kept confidential or only involves the personal interests or concerns of those directly involved.

Source Amnesia

The inability to remember where, when, or how previously learned information has been acquired, while retaining the factual knowledge.

Misinformation Effect

A phenomenon where a person's recall of memories becomes less accurate due to being provided with misleading information after the event.