When all investors analyze securities in the same way and share the same economic view of the world, we say they have ________.
A) heterogeneous expectations
B) equal risk aversion
C) asymmetric information
D) homogeneous expectations

Question

Quizplus · Accepted Answer

Homogeneous expectations refer to a situation where all investors analyze securities in the same way and share the same economic view of the world. This means that they have similar expectations of future market developments, such as interest rates, inflation, and company earnings reports, which creates a more uniform and predictable investment environment.

When All Investors Analyze Securities in the Same Way and Share