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1. When investors make estimates of the price of an asset, some investors estimate the price too high and some estimate the price too low. When investors’ errors average out to zero, this may be because of:
The “wisdom of crowds”
Confirmation bias
Technical trading
Overconfidence bias
2. Based on the Gordon model, if the price of an asset increases then either its growth rate in dividends ________ and/or it became ________ risky.
increased; less
decreased more
decreased; less
increased; more
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