Financial Analyst Recommendation Driven Funds: A Risk Adjusted Measure Analysis
Financial analysts are important information intermediaries in the capital markets. They gather and evaluate information from public and private sources, generate forecasts on companies’ earnings and future prospects, and make recommendations that lead to buying or selling of the companies’ securities by investors. So they provide valuable research to investors and facilitate optimal capital allocation. Indeed financial analyst research aims at forecasting future earnings, stock price (target price) and giving a recommendation of buying or selling for any given company. This information seems to be relevant, especially for unsophisticated investors who may incorporate it to drive their investment decisions.
KeywordsAbnormal Return Earning Forecast Sharpe Ratio Portfolio Return Estimation Period
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