This project adds empirical evidence to the literature on whether international equity markets are efficient or if market overreaction creates exploitable stock trading rules. Specifically, we examine whether dividend-yield based trading rules can be used on two Nordic stock exchanges to outperform bench-mark indexes. These rules rely on building portfolios from the stocks with the highest dividend yields and rebalancing annually. Empirical testing suggests that both raw and risk-adjusted returns from the trading rules exceed those of the index.
|Effective start/end date||01.01.1997 → 31.12.1999|
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