The Value of Risk-Reducing Information
Jeffrey F. Jaffe, Larry J. Merville
Journal of Financial and Quantitative Analysis · 1974 · Volume 9 · Issue 5
Abstract
It has been suggested that information has the three following uses:1. Information can be employed to earn trading profits.2. Information can improve the operating decisions of a firm or group of firms and thereby increase the stock price.3. Information can reduce the risk of a firm or group of firms and thereby increase the stock price.
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