Stock Market Mispricing: Money Illusion or Resale Option? PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Digest May 2010 | Vol. 40 | No. 2 | 3 pages Source: CFA InstituteCarl R. Chen Peter P. Lung F. Albert WangPeter Eickelberg, CFA (Reviewer) Read Abstract The authors identify and test two hypotheses related to stock market mispricing levels and volatility: the money illusion hypothesis and the resale option hypothesis. They report that the money illusion hypothesis helps explain mispricing levels, but the resale option hypothesis more coherently explains both mispricing levels and volatility. They suggest that this research can be used to analyze asset price bubbles across industries and markets. View more information Topics Behavioral Finance | Economics | Portfolio Management : Portfolio Concepts from Capital Market Theory Credits · About the CE Program 0 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: China's 12th Five-Year Plan Alexander Van Kemenade discusses China's 12th five-year plan, which includes higher efficiency in the use of energy, water, and carbon ... More Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Loading ...