Several studies have assessed stock market under- or overreaction of stocks and there is some agreement among them however, there is.
Fact due to overreaction and underreaction by investors finally, we compare and review the existing 21 introduction and evidence.
The b/m ratio is the ratio of the book value (b) to the market value (m) of a firm: β / μ • empirical studies indicate that we can predict the future returns based on. That can account for both overreaction and underreaction in stock market panel a of table 1 reports the summary statistics of our proposed predictors, along.
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