Overextrapolation explains the long-term reversal because A. investors extrapolate past earnings too close into the...
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Accounting
Overextrapolation explains the long-term reversal because A. investors extrapolate past earnings too close into the future and the realized earnings meet what the investors expect. B.investors extrapolate past earnings too far into the future and the realized earnings do not meet what the investors expect. C.investors extrapolate past earnings too far into the future and the realized earnings meet what the investors expect. D.investors think the firms will have high earnings in the future because firm's profit is low in the past.
R3
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