Rhys Bidder

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Whose Asset Sales Matter? Author/Editor: Rhys M. Bidder ; Jamie Coen ; Caterina Lepore ; Laura Silvetri Publication Date: August 2, 2024 Electronic Access: Free Download. Use the free Adobe Acrobat Reader to view this PDF file Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate.

Rhys Bidder Investors have a hard time accounting for uncertainty when calculating how much risk they are willing to bear. They can use economic models to project future earnings, but many models are misspecified along important dimensions. One method investors appear to use to protect against particularly damaging errors in their model is by projecting worst-case scenarios. The responses to such pessimistic predictions provide insights that can explain many of the puzzles about asset prices.