Abstract
Major classical portfolio choice and asset pricing theories to date assume that investors know the assets’ expected return and volatility. This assumption, however, is not fulfilled in practice. In the real world, investors must estimate expected returns either from fundamentals, or from market data. This is what is meant when we speak of incomplete information.
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© 2003 Springer-Verlag Berlin Heidelberg
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Ziegler, A. (2003). Incomplete Information: An Overview. In: Incomplete Information and Heterogeneous Beliefs in Continuous-time Finance. Springer Finance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24755-5_1
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DOI: https://doi.org/10.1007/978-3-540-24755-5_1
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-05567-6
Online ISBN: 978-3-540-24755-5
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