Teaching Market Efficiency with the Value Line Anomaly
Journal of Financial Education, 1995, Vol. 21, Fall, pp. 44-48
15 Pages Posted: 20 Feb 2013
Date Written: August 1, 1993
Value Line’s timeliness rankings for common stocks are the topic of much debate and research in finance journals. The interest stems from Value Line’s purported ability to select stocks that outperform the market, and such stock-selection success is considered anomalous to the market efficiency hypothesis. This paper reviews the literature involving the Value Line anomaly in order to provide finance professors with an interesting method of teaching some of the intricacies of the debate on the market efficiency hypothesis.
Keywords: Value Line, anomaly, market efficiency, timeliness rankings
JEL Classification: G11, G12, G14, G17
Suggested Citation: Suggested Citation