Lecture 15 - Uncertainty and the Rational Expectations Hypothesis: Applications to Predicting Stock Prices, Default Probabilities, and Hyperbolic Discounting thumbnail
Pause
Mute
Subtitles not available
Playback speed
0.25
0.5
0.75
1
1.25
1.5
1.75
2
Full screen

Lecture 15 - Uncertainty and the Rational Expectations Hypothesis: Applications to Predicting Stock Prices, Default Probabilities, and Hyperbolic Discounting

Published on Mar 17, 20123222 Views

According to the rational expectations hypothesis, traders know the probabilities of future events, and value uncertain future payoffs by discounting their expected value at the riskless rate of inter

Related categories