19 Nisan 2012 Perşembe

Smart and Dumb Analysts

Smart Analysts receive informative private signals about the stock market's expected return, dumb analysts receive uninformative signals. The smart analysts' signals are positively cross- correlated, implying that smart analysts following their private information have a tendency to act similary. Consequently, in certain circumstances, an analysts can "look smart" bye herding.. by Graham (1999)

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