Question: c) After this interview has been published, what would Burton Malkish (author of Random Walk down Wall Street), Eugene Fama (Creator of EMH), and other

c) After this interview has been published, what would Burton Malkish (author of Random Walk down Wall Street), Eugene Fama (Creator of EMH), and other skeptics predict will happen to Fuller's ability to pick stocks over time (increase, decrease or stay the same) using the anomaly mentioned in the responses to questions Q2 and Q3? Briefly justify your answer. (5 points) MIND GAMES: A MANAGER SEEKS PROFITS BY PLUMBING ANALYSTS PSYCHES Money, April, 1998, Vol. 27, Issue 4 Here's one way to stay ahead of the market: read people's minds. That, in a sense, is the tactic of former finance professor Russ Fuller, who uses the principles of behavioral psychology to try to one-up Wall Street's analysts. Don't laugh: Fuller has racked up annualized gains of 26.9% over the past five years in the private accounts he manages. Now he's applying the same techniques at the Undiscovered Managers Behavioral Growth Fund. The portfolio is currently available to institutions and through some financial planners. MONEY's Pat Regnier recently went head to head with Fuller, so to speak, and found that there is some logic to his theories. (U of Chicago professor Richard Thaler is a partner in the firm of Fuller-Thaler Asset Management Inc.) (Note. Analysts are experts who study individual companies and industries. Many investors base their stock buying and selling decisions on analyst recommendations. Thus, demand for a stock and its selling price are affected by analyst recommendations.) c) After this interview has been published, what would Burton Malkish (author of Random Walk down Wall Street), Eugene Fama (Creator of EMH), and other skeptics predict will happen to Fuller's ability to pick stocks over time (increase, decrease or stay the same) using the anomaly mentioned in the responses to questions Q2 and Q3? Briefly justify your answer. (5 points) MIND GAMES: A MANAGER SEEKS PROFITS BY PLUMBING ANALYSTS PSYCHES Money, April, 1998, Vol. 27, Issue 4 Here's one way to stay ahead of the market: read people's minds. That, in a sense, is the tactic of former finance professor Russ Fuller, who uses the principles of behavioral psychology to try to one-up Wall Street's analysts. Don't laugh: Fuller has racked up annualized gains of 26.9% over the past five years in the private accounts he manages. Now he's applying the same techniques at the Undiscovered Managers Behavioral Growth Fund. The portfolio is currently available to institutions and through some financial planners. MONEY's Pat Regnier recently went head to head with Fuller, so to speak, and found that there is some logic to his theories. (U of Chicago professor Richard Thaler is a partner in the firm of Fuller-Thaler Asset Management Inc.) (Note. Analysts are experts who study individual companies and industries. Many investors base their stock buying and selling decisions on analyst recommendations. Thus, demand for a stock and its selling price are affected by analyst recommendations.)
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