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Article: Probabilistic investing: or how to win the Globe and Mail's Stock Picking Contest (50% of the time)
- Article from:
- Financial Services Review
- Article date:
- October 1, 2005
- Author:
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Copyright informationCopyright Academy of Financial Services Fall 2005. Provided by ProQuest LLC. (Hide copyright information)
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Abstract
For the past nine years the Globe and Mail (Canada's oldest national daily) newspaper has held an annual stock picking contest. In 2002, 2003, and then again in 2004, a finance professor won this contest. Motivated and inspired by the contest, this article shows that a rational player can increase the odds of winning an investment contest to a 50/50 chance by selecting a stock that (1) is highly volatile, and (2) negatively correlated with the other selections, or (3) exhibits a negative empirical beta. We conclude by arguing that picking stocks to win an investment game or contest is quite different from selecting securities for a personal investment portfolio. © 2005 Academy of ...
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Article: Stock picking.
Australasian Business Intelligence;
June 30, 2002 ;
212 words
...ABIX via COMTEX) -- Australian fund managers are weighing up the merits of two different stock picking styles. These are the diversified approach versus the focus style of investment guru Warren Buffett. Fund managers have preached...
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