Economic earnings and accounting earnings

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Behavioural finance posits that investors possess information processing errors. Discuss the importance of information processing errors, then list and explain the four information processing errors discussed in the text.

Discuss the differences between economic earnings and accounting earnings. Which is preferred in financial analysis? Which is most widely used, and why?

Discuss the advantages of the single-index model over the Markowitz model in terms of numbers of variable estimates required and in terms of understanding risk relationships.

Describe the differences between futures and forward contracts.

Reference no: EM133272874

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