The effect of analyst recommendations on stock prices

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Reference no: EM131448863

1. Several studies have looked at the effect of analyst recommendations on stock prices. These studies have concluded that the recommendations are not useful to investors interested in making excess returns.

True

False

2. Stocks that have high P/E ratios are much more likely to be found to be undervalued using the dividend-discount model.

True

False

Reference no: EM131448863

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