After careful analysis of the data, you conclude that firms which hire CC graduates earn...
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Accounting
After careful analysis of the data, you conclude that firms which hire CC graduates earn abnormal returns of per year over the ensuing few years. As a student of behavioral finance, you believe this is mispricing and represents actual profit. You decide to invest your nest egg of $ based on this conclusion and have two options. Option : invest all $ in one company that has just hired a Carlson graduate Option : invest $ in each of different companies that just hired a Carlson graduate Which option is preferable? Approximately three sentences total Answer:
After careful analysis of the data, you conclude that firms which hire CC graduates earn abnormal returns of per year over the ensuing few years. As a student of behavioral finance, you believe this is mispricing and represents actual profit. You decide to invest your nest egg of $ based on this conclusion and have two options.
Option : invest all $ in one company that has just hired a Carlson graduate
Option : invest $ in each of different companies that just hired a Carlson graduate
Which option is preferable? Approximately three sentences total
Answer:
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