Two Factors Model
CFA Institute
Are Two Factors Enough? The U.K. Evidence Author(s): George Leledakis and Ian Davidson Reviewed work(s): Source: Financial Analysts Journal, Vol. 57, No. 6 (Nov. - Dec., 2001), pp. 96-105 Published by: CFA Institute Stable URL: http://www.jstor.org/stable/4480359 . Accessed: 13/03/2013 15:30
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This content downloaded on Wed, 13 Mar 2013 15:30:52 PM All use subject to JSTOR Terms and Conditions
Are
Two
Factors
Enough?
The
U.K.
Evidence
and IanDavidson George Leledakis valueof equityto market that Somestudiesin the1990sdocumented book valueof equity(MVE)capture valueof equity(BV/MV)and the market in in returns theU.S.market the1963of variation stock thecross-sectional that however, two othervariablesargued, researchers Other 90 period. ratio ratio thesales-to-price (S/P)andthedebt-to-equity (D/E)-have more thanBV/MVandMVE.Theevidence stockreturns powerfor explanatory that data,indicates S/P and StockExchange fromLondon in this article, the the absorb rolesofBV/MVandMVEin explaining DIEdonotentirely We in stockreturns theU.K.market. didfindthat of cross-section average of the beyond contribution BV/MV power explanatory S/P hassignificant by powerof DIEis captured S/P. andMVE,buttheexplanatory
studies have documented that stock returns can be predicted by company-specificvariables in
Are Two Factors Enough? The U.K. Evidence Author(s): George Leledakis and Ian Davidson Reviewed work(s): Source: Financial Analysts Journal, Vol. 57, No. 6 (Nov. - Dec., 2001), pp. 96-105 Published by: CFA Institute Stable URL: http://www.jstor.org/stable/4480359 . Accessed: 13/03/2013 15:30
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp
.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
.
CFA Institute is collaborating with JSTOR to digitize, preserve and extend access to Financial Analysts Journal.
http://www.jstor.org
This content downloaded on Wed, 13 Mar 2013 15:30:52 PM All use subject to JSTOR Terms and Conditions
Are
Two
Factors
Enough?
The
U.K.
Evidence
and IanDavidson George Leledakis valueof equityto market that Somestudiesin the1990sdocumented book valueof equity(MVE)capture valueof equity(BV/MV)and the market in in returns theU.S.market the1963of variation stock thecross-sectional that however, two othervariablesargued, researchers Other 90 period. ratio ratio thesales-to-price (S/P)andthedebt-to-equity (D/E)-have more thanBV/MVandMVE.Theevidence stockreturns powerfor explanatory that data,indicates S/P and StockExchange fromLondon in this article, the the absorb rolesofBV/MVandMVEin explaining DIEdonotentirely We in stockreturns theU.K.market. didfindthat of cross-section average of the beyond contribution BV/MV power explanatory S/P hassignificant by powerof DIEis captured S/P. andMVE,buttheexplanatory
studies have documented that stock returns can be predicted by company-specificvariables in