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ipn [44]
3 years ago
8

DeBondt and Thaler (1985) found that the poorest-performing stocks in one time period experienced __________ performance in the

following period and that the best-performing stocks in one time period experienced __________ performance in the following time period.
Business
1 answer:
Goryan [66]3 years ago
5 0

Answer:

DeBondt and Thaler (1985) found that the poorest-performing stocks in one time period experienced <em>good</em> performance in the following period and that the best-performing stocks in one time period experienced <em>poor</em> performance in the following time period.

Explanation:

DeBondt and Thaler carried out a study that examined stocks of 35 worst and best performing firms over a previous five-year period.The study showed that over the following three-year period, the firms that were previously performing poorly performed better than the former best performing firms, by an average of 25%.This reversal in the fortunes of stocks of firms in the following period is called the Reversal Effect.

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