The Value Spread as a Predictor of Returns

Recent studies have used the value spread to predict aggregate stock returns to construct cash-flow betas that appear to explain the size and value anomalies. We show that two related variables, the book-to-market spread (the book-to-market of value stocks minus that of growth stocks) and the market-to-book spread (the market-to-book of growth stocks minus that of value stocks) predict returns in different directions and exhibit opposite cyclical variations. Most important, the value spread mixes information on the book-to-market and market-to-book spreads, and appears much less useful in predicting returns.

Experimental implementation of generalized Grover's algorithm of multiple marked states and its application

Generalized Grover's searching algorithm for the case in which there are multiple marked states is demonstrated on a nuclear magnetic resonance (NMR) quantum computer. The entangled basis states (EPR states) are synthesized using the algorithm.Comment: 20 pages,3 figure