Which of the following is not a concept related to explaining abnormal excess stock returns?
A) January effect
B) neglected-firm effect
C) P/E effect
D) preferred stock effect

Question

Quizplus · Accepted Answer

The preferred stock effect is not a concept related to explaining abnormal excess stock returns. The January effect refers to the tendency of stock returns to be higher in January, the neglected-firm effect suggests that stocks of smaller or less researched firms can experience abnormal returns, and the P/E effect relates to the relationship between a stock's price-to-earnings ratio and its potential for excess returns.

Which of the Following Is Not a Concept Related to Explaining