The findings of Jegadeesh and Titman (1993)when looking at stocks in the USA in relation to findings about very strong prior positive or negative performance confer that a profitable momentum strategy appears viable and can be assessed by assuming a long position in the winner portfolio and a short position in the loser portfolio.

Question

Quizplus · Accepted Answer

It is true,as stated above.Stock returns appear to exhibit momentum whereby the path of prior returns influences future direction.

The Findings of Jegadeesh and Titman (1993)when Looking at Stocks