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1 November 1966 Financial Analysts Journal Volume 22, Issue 6

The Variability of Common Stock Quality Ratings

  1. Richard A. Stevenson

Common stock quality ratings have been used to indicate the risk associated with a stock. This article examines the ratings given by three investment advisory services and the reason for the differences that appear. Correlation techniques are used to help to explain the differences in ratings. The evidence indicates that risk evaluation based on quality ratings is not satisfactory because of significant rating variations.

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