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Initial applications of prediction markets (PMs) indicate they provide good forecasting instruments in many settings, such as elections, the box office, or product sales. One particular characteristic of these “first-generation” (G1) PMs is that they link the payoff value of a stock's share...
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We propose a rational theory of momentum and reversal based on delegated portfolio management. A competitive investor …
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We propose a rational theory of momentum and reversal based on delegated portfolio management. Flows between investment …
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