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:

Observations

The act of observing something or the data collected during an event or process.

Populations

The entire group of individuals or instances about whom the data is collected or a study is conducted.

Elements

The entities on which data are collected.

Samples

Collections or subsets of data taken from a larger population, used to analyze and make inferences about the population.