Construct · 1 fields · 1 citations

extrapolative expectations: a standalone construct

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extrapolativeexpectations1 CONSTRUCTExtrapolativeGREENWOOD · BEHAVIORAL FINANCE

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Behavioral finance

investors expecting high returns after high past returns, contrary to what rational models predict.

In behavioral finance, extrapolative expectations refers to investors expecting high returns after high past returns, contrary to what rational models predict. This meaning comes from Greenwood (2014) in Review of Financial Studies.[1]

Unit
Recovery means
Measured by

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References

  1. Greenwood, R., & Shleifer, A. (2014). Expectations of Returns and Expected Returns. Review of Financial Studies, 27(3), 714-746. https://doi.org/10.1093/rfs/hht082

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