Examlex
Which of the following is classified as a partial productivity ratio?
Rational Risk Factors
Factors based on economic theory that affect asset prices and can predict future investment returns, assuming that market participants act rationally.
Value Premium
The excess returns that investors may earn by holding stocks that are considered undervalued compared to their fundamentals.
Market Irrationality
Occurrences when financial markets make movements that are inconsistent with the underlying economic fundamentals, sometimes leading to asset price bubbles or crashes.
Rational Risk Premia
The additional return required by investors for taking on additional risk in a rational and calculated manner.
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