The study by Ou and Penman, which used traditional accounting measures to predict whether a company's income would increase or decrease, indicated that markets are not as efficient as previously thought, and that fundamental analysis is important for investment purposes.
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Q26: Excess income over and above the expected
Q27: Capital market research has shown that investors
Q28: When accounting numbers are used to monitor
Q29: Surveys of individual investors have generally indicated
Q30: The relationship between risk and return for
Q32: The relationship between earnings and stock prices
Q33: The study by Lev that examined earnings
Q34: Research studies have predominantly supported the naive-investor
Q35: Accounting-based ratios have not been very useful
Q36: Accounting information ranks at the top on
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