Reaction of Stock Markets
Introduction
Two Hypotheses
Efficient Market Hypothesis
Empirical Tests Performed
Result
More January Effect
Empirical Results
Other Notable Findings
Conclusion:“Does the Stock Market Overreact?”
Test
Portfolio Creation
Results
Results Discussion
Interpretation of Results
Results from DeBont & Thaler
Testing was conducted to determine if these results were due to other systematic risks: 
Beta and Market Cap Test
Additional Test done to try and explain results in Panel A & B
Conclusion

Results Discussion
Panel A:
Buy minus sell portfolios resulted in positive returns throughout the panel meaning portfolios comprised of past winners outperformed portfolios comprised of past losers.
This was most pronounced in the 12 month formation period, 3 month holding period
Panel B
Same 12 month observation period followed by a 3 month holding period yielded the highest difference between the results