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The expansion of investment strategies and capital markets is altering the significance and empirical rationality of … diverged from their intrinsic value. This paper presents an analysis of anomaly returns in the presence of the theory of the …
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We provide simple examples to illustrate how wealth-driven selection works in asset markets. Our examples deliver both good and bad news. The good news is that if individual assets demands are expressed as a fractions of wealth to be invested in each asset, e.g. because traders maximize an...
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