Question: Fundamentals explain less of the variation in TRS than in
Fundamentals explain less of the variation in TRS than in market-valueto- book-value or market-value-to-earnings ratios (as measured by the R2 shown in Exhibits 15.7 and 15.10). This holds true even when TRS is measured over 10-year periods. Why is TRS less clearly linked to fundamentals?
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