In studies, forecasts and recommendations to governments, markets are seen as capable of processing so-called rational information. Economists claim that firms’ market prices result from rational expectation about their future monetary flows and intangible assets not accounted by bookkeeping, which, however, would enable those future monetary flows to occur.
Click here for original story, Economists have misunderstood a key indicator—and it’s a big problem, says researcher
Source: Phys.org