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Recognize good management

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Your broker claims that well-managed firms are not necessarily more profitable investment opportunities than firms with an average management. She cites an empirical study where 17 well-managed firms and a control group of 17 average firms were followed for 8 years after the former were reported in the press to be "excelling" as far as management is concerned. Is this evidence that the stock market does not recognize good management?

Reference no: EM131077780

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