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Subrahmanyam, Avanidhar Archives - Ideas for Leaders

Beware of Over-Optimistic Investors Skewing High-Risk Stock Prices

In finance, a capital asset's sensitivity to risk is often represented by the quantity beta (β), and investment opportunities that have a high risk profile are known as ‘high beta’ stocks. In this research it is hypothesized that ‘high beta’ stocks are unduly influenced by sentiment due to the investment decisions taken by ‘noise’ traders. […]

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