An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [4]

CHAPTER III STUDY DESIGN AND METHODOLOGY The design of this study has gone through numerous parts with different ideas in different periods. The final results reflected the expansion of the research designs from its most initial idea. This chapter discusses about the design, forming structure, and decisions in choosing factors …

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An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [3]

CHAPTER II LITERATURE REVIEW It is a long continuously evolving history of academic financial world, which divided into numerous different schools and development paths. This section attempts to give a bird’s-eye-view to the evolving history of Price Earnings findings, Market Capitalization studies and their family issues which finally lead to …

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An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [2]

CHAPTER I INTRODUCTION “The ancient Sumerians attempted to divine meaning from examining the entrails of dead animals. We examine the behavior of residuals that affect the earnings/price (E/P) ratio, and use these residuals to predict future market returns.” Donna Dudney, Benjamas Jirasakuldech, & Thomas Zorn – 2008 1. Background Context …

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An Analysis on Relations of Price-Earnings Ratio and Market Capitalization to Anomaly Returns [1]

A note from May 16th, 2012: This is my graduating thesis at International University – Vietnam National University in Summer 2010.  Through out the study, I found that there are correlations between Price-earnings (P/E) ratio, Size factor, and combination of the two toward a better stock value appreciation (attributed to …

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