Do noise traders influence stock prices?
|Title:||Do noise traders influence stock prices?||Authors:||Kelly, Morgan||Permanent link:||http://hdl.handle.net/10197/520||Date:||Aug-1997||Abstract:||This paper tests a smart money-noise trader model directly by comparing its predictions with the behavior of actual investors. It assumes that individual probability of being a noise trader is diminishing in income, high-income households are smart money, lower-income households are noise traders with passive investors in between. Market data behave as predicted: high participation by the general population is a negative predictor of one-year returns, and is associated with law participation by very high-income groups. The implications for the equity premium puzzle of the low returns earned by noise traders are discussed.||Type of material:||Journal Article||Publisher:||Blackwell||Copyright (published version):||Copyright 1997 by The Ohio State University Press||Keywords:||Stocks--prices; Investment analysis; Financial performance; Stock exchanges & current events||Subject LCSH:||Capitalists and financiers
Rate of return
|Language:||en||Status of Item:||Peer reviewed|
|Appears in Collections:||Economics Research Collection|
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