This study examines the effect of lottery characteristics on analysts’ earnings forecasts. We find that analysts are more optimistic for lottery firms. The optimism of earnings forecast decreases with analysts’ general and firm-specific experience. Information uncertainty would enhance the...

The capital asset-pricing model (CAPM) asserts that in equilibrium the market portfolio is the tangency portfolio of the efficient frontier spanned by all risky assets. Conceptually, the tangency portfolio represents an ex ante efficient portfolio, while the market portfolio represents an ex...