TAKE-HOME TEST:

When a stock is moved to the strong buy (IBES Code “1”) category from “buy” or “hold”, the average market response is a size-decile-adjusted return of 3%. This is significantly higher than the 1.06% to 1.48% range reported by Barber, et.al. for the 1985 to 1996 time period in the Zacks data. ................
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