Past winners will outperform the past losers in near future

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Reference no: EM131510954

True or False. Please provide a brief explanation.

1. The reversal effect says the past winners will outperform the past losers in the near future.

2. Once the stock A is categorized as a small firm, it never changes. (Hint: Does the stock price changes? Does the market cap change over time? Note the market cap is the price per share times the number of shares outstanding in the market.)

3. Once the stock A is categorized as a value firm, it never changes. (Hint: Market equity equals the market cap. )

Reference no: EM131510954

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