When you follow the momentum strategy

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True or False. Please provide a brief explanation.

1. When you follow the momentum strategy, you should identify winner and loser stocks based on the past performance in the last 3 years.

2 The stock A is categorized as a value firm in 2013. If the stock price of A has fallen a lot since then but its book equity is the same as before, the stock A can be a growth firm now.

3. The post-earnings-announcement price drift implies that the investors overreact to the information content of the earnings announcements on the announcement day and the stock price will correct later.

Reference no: EM131510955

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