A Understanding main points

1. Mark these statements T (true) or F (false) according to the information in the text on the opposite page. Find the part of the text that gives the correct information.

2. Brokers and university professors agree that stock market analysts are useful.

3. Research in the 1970s showed that it was better to buy stock not recommended by analysts.

4. In Barber's study, stock recommended by analysts brought much higher than average returns.

5. The best return on investment can be made by investing in small and medium-sized firms.

6. To get good returns it is best not to buy or sell stocks very frequently.

7. The cost of buying and selling can greatly reduce your profit.

8. Small investors can profit from analysts' recommendations, according to Professor Lehavy.

9. The writer concludes that the analysts are worth their high salaries.

B Understanding details Complete the table with details about Professor Barber's research.

Number of recommendations studied:1…………

Number of US equity analysts in the study: 2.................

Portfolios:

1 = highest rated; 5 = lowest rated

Portfolio 1 Recommendation: 3.................

Portfolio 2 Recommendation: 4.................

Portfolio 3 no recommendation.

Portfolio 4 Recommendation: 5.................

Portfolio 5 Recommendation: 6.................

Results:

Portfolio 1: Average annual return: 7.................

Portfolio 5: Average annual return: 8 ………...

Дата добавления: 2015-07-19