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Say stocks of firms which change their logo in a given year tend to outperform ( have higher abnormal returns ) the stocks of firms
Say stocks of firms which change their logo in a given year tend to outperform have higher abnormal returns the stocks of firms which dont change their logos for the following year. If the above observation is the result of mispricing of firms that change their logos relative to firms that dont change their logos how would you invest to take advantage of your analysis and get a positive abnormal return on a zero investment portfolio?
Say stocks of firms which change their logo in a given year tend to outperform have higher abnormal returns the stocks of firms which dont change their logos for the following year. If the above observation is the result of mispricing of firms that change their logos relative to firms that dont change their logos how would you invest to take advantage of your analysis and get a positive abnormal return on a zero investment portfolio?
Long a portfolio of stocks that change their logos short a portfolio of stocks that dont change their logos
Short a portfolio of stocks that change their logos long a portfolio of stocks that dont change their logos
Long a portfolio of stocks that dont change their logos also long a portfolio of stocks that do change their logos
None of the above
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