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New Pomona College Research Shows Beating Stock Market May Be Easier Than Investors Think.
AScribe Business & Economics News Service, August, 2006
Byline: Pomona College
CLAREMONT, Calif., Aug. 7 (AScribe Newswire) -- Beating the stock market may be easier than investors think - as easy as following a popular magazine's most-admired companies list, according to new research from a Pomona College economics professor and one of his students.
Professor Gary Smith and Jeff Anderson, Class of 2005, set out to test an enduring piece of Wall Street conventional wisdom: that great companies often don't make for great investments. The idea was that if a company already has an excellent reputation, that knowledge is already built into its stock price, limiting the potential for big gains. Known as the "efficient markets hypothesis," this notion has gained wide acceptance over the years.
Because...
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