2012 CFA Mock Exam - Question #28

Where on earth did this q come from?

I had not seen the variance error term before, nor would ever think this would need to be incorporated.

To anyone who was not tripped up by this question (or if you were but figured it out), can you please let me know where this is from and the logic behind it?

Thanks!

it’s in the beginning of the cap mkts book…let me know if you can’t find it

What mock exam is this? Q-28 from 2012 Mock is on behavioural finance…

I am not seeing that. If I recall that was in last year’s sample exam…is that what you mean?