What factors work well in Sample for this data explain why Telecommunication Services Personal InvestClass Insample 12 31 1987 To 12 31 1997 Factor 1 Sector Sector Telecommunication Services Equal Weighted 12 Month Benchmark Return 12 63 Risk Free Rate Return 5 40 Avg Returns Return Dispersion PHR UPHR DPHR HR FT IC t Stat Universe Standard Return Deviation Up Down Stock Total Avg IC Number of Factor (Avg Sum) Return Bench Bench Bench Hit Rate Turnover MCap Beta IC T Stat Securities Sector 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 N A N A 6,670 Telecommunication Services 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 N A N A 6,670 Earnings to Price 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 06 0 55 6,670 1 20 18 18 20 66 12 62 14 88 89 60 76 30 99 11,686 0 69 0 04 0 29 1,210 2 15 99 18 68 50 41 45 63 77 78 49 28 43 51 11,450 0 55 0 06 0 23 1,247 3 14 99 28 22 47 11 50 49 27 78 45 25 33 97 3,668 1 01 0 03 0 10 1,297 4 18 35 39 13 40 50 47 57 0 00 47 07 31 86 1,511 1 50 0 04 0 07 1,271 5 18 17 38 73 60 33 64 08 38 89 47 25 23 79 1,319 1 88 0 02 0 10 1,224 Book to Price 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 03 0 35 6,670 1 14 90 17 66 55 37 48 54 94 44 50 22 20 95 5,441 0 77 0 03 0 06 1,203 2 19 57 23 86 56 20 51 46 83 33 56 07 47 56 7,802 0 86 0 01 0 02 1,250 3 20 59 27 92 53 72 56 31 38 89 50 97 53 50 8,169 0 97 0 01 0 04 1,303 4 17 02 32 30 47 93 55 34 5 56 45 96 43 17 6,521 1 50 0 01 0 04 1,278 5 15 30 38 72 52 07 53 40 44 44 45 97 21 94 1,244 1 48 0 06 0 23 1,230 Free Cash Flow to Price 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 05 0 41 6,670 1 20 66 25 33 58 68 61 17 44 44 55 34 25 16 10,557 0 91 0 05 0 34 1,210 2 17 61 20 03 58 68 60 19 50 00 52 87 39 01 11,134 0 74 0 00 0 00 1,250 3 14 41 27 80 47 11 45 63 55 56 46 97 39 87 4,804 0 95 0 00 0 09 1,300 4 19 75 35 35 44 63 49 51 16 67 46 00 39 44 1,998 1 37 0 06 0 18 1,277 5 15 72 34 49 61 16 66 99 27 78 48 94 27 56 973 1 68 0 05 0 11 1,227 Cash Flow From Operation to Price 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 08 0 71 6,670 1 21 63 21 95 64 46 63 11 72 22 58 87 22 97 10,292 0 86 0 06 0 25 1,210 2 16 64 21 95 55 37 51 46 77 78 51 95 37 07 12,390 0 61 0 10 0 42 1,250 3 17 06 26 07 57 85 57 28 61 11 48 48 34 33 4,594 0 88 0 01 0 03 1,300 4 14 18 32 87 42 15 46 60 16 67 43 70 32 55 1,458 1 44 0 03 0 07 1,277 5 18 30 38 07 49 59 55 34 16 67 46 70 20 41 758 1 83 0 04 0 11 1,227 Earnings Quality (Sloan) 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 13 0 98 6,670 1 19 44 24 19 57 85 53 40 83 33 57 92 31 11 8,810 0 64 0 08 0 34 1,128 2 21 28 19 86 62 81 62 14 66 67 59 66 44 43 11,031 0 87 0 03 0 05 1,173 3 14 84 25 40 46 28 45 63 50 00 45 39 43 23 6,181 0 84 0 03 0 13 1,226 4 16 44 34 57 55 37 58 25 38 89 43 55 47 05 3,949 1 53 0 02 0 10 1,203 5 13 21 33 25 46 28 48 54 33 33 41 59 28 62 851 1 52 0 13 0 46 1,147 50D200D 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 01 0 02 6,670 1 16 97 35 29 47 93 55 34 5 56 47 03 53 06 3,422 1 19 0 08 0 24 1,270 2 15 51 26 46 52 07 55 34 33 33 45 99 95 21 6,479 0 84 0 05 0 20 1,312 3 20 21 23 94 61 16 56 31 88 89 53 96 101 35 7,159 0 90 0 02 0 06 1,364 4 19 36 27 10 52 07 52 43 50 00 53 88 96 10 7,023 1 11 0 00 0 01 1,335 5 14 34 33 02 52 07 53 40 44 44 46 41 55 09 3,747 1 60 0 09 0 33 1,294 R Change in CommShs Out 17 41 25 79 50 41 52 43 38 89 49 61 4 88 5,538 1 11 0 02 0 20 6,670 1 17 75 23 57 52 07 53 40 44 44 51 11 25 82 6,368 1 08 0 14 0 46 1,203 2 17 28 23 11 57 02 55 34 66 67 52 32 38 42 8,537 0 95 0 02 0 07 1,245 3 19 94 25 86 51 24 51 46 50 00 51 45 42 13 7,797 0 86 0 03 0 12 1,302 4 15 82 31 92 45 45 50 49 16 67 47 12 44 51 4,508 1 27 0 04 0 17 1,269 5 15 73 37 09 43 80 49 51 11 11 46 84 30 79 2,050 1 54 0 04 0 17 1,225

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What factors work well in-Sample for this data & explain why: Telecommunication Services Personal:InvestClass_Insample 12/31/1987 To 12/31/1997 Factor 1: Sector Sector: Telecommunication Services Equal Weighted

What factors work well in-Sample for this data & explain why:

Telecommunication Services
Personal:InvestClass_Insample
12/31/1987 To 12/31/1997
Factor 1: Sector
Sector: Telecommunication Services
Equal Weighted / 12 - Month
Benchmark Return: 12.63
Risk Free Rate Return: 5.40
		Avg Returns	Return Dispersion	PHR	UPHR	DPHR	HR	FT			IC	t-Stat
		Universe	Standard			% >
		Return	Deviation	% >	% > Up	Down	Stock	% Total	Avg.			IC	Number of
Factor		(Avg Sum)	Return	Bench	Bench	Bench	Hit Rate	Turnover	MCap	Beta	IC	T-Stat	Securities

Sector		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	N/A	N/A	6,670
	Telecommunication Services	17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	N/A	N/A	6,670
Earnings to Price		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.06	0.55	6,670
	1	20.18	18.20	66.12	62.14	88.89	60.76	30.99	11,686	0.69	-0.04	-0.29	1,210
	2	15.99	18.68	50.41	45.63	77.78	49.28	43.51	11,450	0.55	0.06	0.23	1,247
	3	14.99	28.22	47.11	50.49	27.78	45.25	33.97	3,668	1.01	-0.03	-0.10	1,297
	4	18.35	39.13	40.50	47.57	0.00	47.07	31.86	1,511	1.50	-0.04	-0.07	1,271
	5	18.17	38.73	60.33	64.08	38.89	47.25	23.79	1,319	1.88	-0.02	-0.10	1,224
Book to Price		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.03	0.35	6,670
	1	14.90	17.66	55.37	48.54	94.44	50.22	20.95	5,441	0.77	0.03	0.06	1,203
	2	19.57	23.86	56.20	51.46	83.33	56.07	47.56	7,802	0.86	-0.01	-0.02	1,250
	3	20.59	27.92	53.72	56.31	38.89	50.97	53.50	8,169	0.97	0.01	0.04	1,303
	4	17.02	32.30	47.93	55.34	5.56	45.96	43.17	6,521	1.50	0.01	0.04	1,278
	5	15.30	38.72	52.07	53.40	44.44	45.97	21.94	1,244	1.48	-0.06	-0.23	1,230
Free Cash Flow to Price		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.05	0.41	6,670
	1	20.66	25.33	58.68	61.17	44.44	55.34	25.16	10,557	0.91	0.05	0.34	1,210
	2	17.61	20.03	58.68	60.19	50.00	52.87	39.01	11,134	0.74	0.00	0.00	1,250
	3	14.41	27.80	47.11	45.63	55.56	46.97	39.87	4,804	0.95	0.00	-0.09	1,300
	4	19.75	35.35	44.63	49.51	16.67	46.00	39.44	1,998	1.37	0.06	0.18	1,277
	5	15.72	34.49	61.16	66.99	27.78	48.94	27.56	973	1.68	0.05	0.11	1,227
Cash Flow From Operation to Price		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.08	0.71	6,670
	1	21.63	21.95	64.46	63.11	72.22	58.87	22.97	10,292	0.86	0.06	0.25	1,210
	2	16.64	21.95	55.37	51.46	77.78	51.95	37.07	12,390	0.61	0.10	0.42	1,250
	3	17.06	26.07	57.85	57.28	61.11	48.48	34.33	4,594	0.88	-0.01	-0.03	1,300
	4	14.18	32.87	42.15	46.60	16.67	43.70	32.55	1,458	1.44	0.03	0.07	1,277
	5	18.30	38.07	49.59	55.34	16.67	46.70	20.41	758	1.83	0.04	0.11	1,227
Earnings Quality (Sloan)		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.13	0.98	6,670
	1	19.44	24.19	57.85	53.40	83.33	57.92	31.11	8,810	0.64	0.08	0.34	1,128
	2	21.28	19.86	62.81	62.14	66.67	59.66	44.43	11,031	0.87	-0.03	-0.05	1,173
	3	14.84	25.40	46.28	45.63	50.00	45.39	43.23	6,181	0.84	0.03	0.13	1,226
	4	16.44	34.57	55.37	58.25	38.89	43.55	47.05	3,949	1.53	-0.02	-0.10	1,203
	5	13.21	33.25	46.28	48.54	33.33	41.59	28.62	851	1.52	0.13	0.46	1,147
50D200D		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.01	0.02	6,670
	1	16.97	35.29	47.93	55.34	5.56	47.03	53.06	3,422	1.19	0.08	0.24	1,270
	2	15.51	26.46	52.07	55.34	33.33	45.99	95.21	6,479	0.84	-0.05	-0.20	1,312
	3	20.21	23.94	61.16	56.31	88.89	53.96	101.35	7,159	0.90	0.02	0.06	1,364
	4	19.36	27.10	52.07	52.43	50.00	53.88	96.10	7,023	1.11	0.00	-0.01	1,335
	5	14.34	33.02	52.07	53.40	44.44	46.41	55.09	3,747	1.60	0.09	0.33	1,294
[R] Change in CommShs Out		17.41	25.79	50.41	52.43	38.89	49.61	4.88	5,538	1.11	0.02	0.20	6,670
	1	17.75	23.57	52.07	53.40	44.44	51.11	25.82	6,368	1.08	-0.14	-0.46	1,203
	2	17.28	23.11	57.02	55.34	66.67	52.32	38.42	8,537	0.95	-0.02	-0.07	1,245
	3	19.94	25.86	51.24	51.46	50.00	51.45	42.13	7,797	0.86	0.03	0.12	1,302
	4	15.82	31.92	45.45	50.49	16.67	47.12	44.51	4,508	1.27	0.04	0.17	1,269
	5	15.73	37.09	43.80	49.51	11.11	46.84	30.79	2,050	1.54	-0.04	-0.17	1,225