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Article
Letter: Informed Investors Have Limited Ability to Push Prices to Efficiency
The Economists' Voice (2006)
  • Richard H. Serlin, University of Arizona
Abstract

J. Bradford DeLong and Konstantin Magin's July, 2006 article gave several good reasons why "informed and aggressive" investors will not necessarily push prices all of the way to their fundamental levels, but missing was the fact that there may not be enough such investors given that none will rationally choose to be too aggressive and have too undiversified a portfolio, according to Richard Serlin.

Keywords
  • market efficiency
Publication Date
December, 2006
Citation Information
Richard H. Serlin. "Letter: Informed Investors Have Limited Ability to Push Prices to Efficiency" The Economists' Voice Vol. 3 Iss. 8 (2006)
Available at: http://works.bepress.com/richard_serlin/1/