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Subject:  Re: Is there a biase in CAPS ratings? Date:  10/27/2008  11:42 AM
Author:  TMFBiologyFool Number:  84 of 502

I am curious if the CAPS ratings of stock reflect a normal distribution with the vast majority of stocks rated 2-4 stars with small numbers at the extremes. Is this true or is there a biase to the ratings? Ditto as it relates to "all stars" ratings?

Todd will be by shortly to correct me if I'm wrong, but I believe the stocks are evenly divided between the 5 stars with 20% of rated stocks in each group.

The all stars are the top 20% (anyone with a rating over 80). The higher ranked people contribute more to the score, so 4 and 5 star rankings may have a higher percentage of all stars rating the stock outperform.

Hope that helps,
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