Asset pricing models generate predictions relating assets’ expected rates of return and their risk attributes. Most tests of these models have employed realized rates of return as a proxy for expected return. We use analysts’ expected rates of return to examine the relation between these...

Using a large database of analysts' target prices, we examine short-term market reactions to target price announcements and long-term co-movement of target and stock prices. We find a significant market reaction to the information contained in analysts' target prices, both unconditional and...

Using a large database of analysts' target prices issued over the period 1997-1999 we examine short-term market reactions to target price revisions and long-term co-movement of target and stock prices. We find a significant market reaction to the information contained in analysts' target prices,...

Using a large database of analysts' target prices issued over the period 1997-1999, we examine short-term market reactions to target price revisions and long-term comovement of target and stock prices. We find a significant market reaction to the information contained in analysts' target prices,...