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2015 Conference

du 15 au 16 October 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

Assessing Performance of Morningstar’s Star Rating System for Stocks

jeudi 15 octobre 2015 à 14:05–15:35 EDT
2-Gallery
Keywords: 5 words maximum

investments ratings portfolio performance

Very short description for use in the program to help attendees understand more than a title can describe

Investors have a vast array of advisory and ratings services to assist them with security selection.  One of the most prominent sources of stock ratings is Morningstar.  For a modest fee, investors can access Morningstar‘s Star ratings for individual stocks.  We evaluate the performance of portfolios formed using this rating system.  During the 11 years of our analysis, we find that 5-star stocks provide an annual return of 13.66% versus 8.44% for 1-star stocks.  We also find considerable variance in these portfolios‘ exposure to risk and style factors over time.

Lead & Corresponding Author

Paul Bolster, Northeastern University
Job Title

Professor of Finance

Additional Authors

Emery Trahan, Northeastern University
Job Title

Senior Associate Dean

Pinshuo Wang, Northeastern University
Job Title

PhD Candidate

Chargement en cours …