MS · Composite accounting · Mohanram (2005)

Mohanram G-score

Long minus short portfolio using the original paper's sort and weighting, market-adjusted. Quarterly, 1976Q3 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
1.52%
95% interval 0.62% to 2.67%
Next year
1.57%
95% interval 0.58% to 2.71%
Next five years
1.74%
95% interval 0.47% to 2.91%

OAP publishes no uniform quintile or decile portfolios for this signal, so only the paper's original portfolio convention is shown.

Cumulative market-adjusted return

+10,542% since 1976Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1976Q3–2024Q4 10.49% 12.29% 0.85 5.95
2020Q1–2024Q4 3.48% 15.95% 0.22 0.49
2024Q1–2024Q4 1.22% 6.34% 0.19 0.19

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter 0.249 0.102 – 0.437 0.00
Next year 0.258 0.095 – 0.444 0.00
Next five years 0.283 0.075 – 0.474 0.00
Category
Composite accounting
Form
Discrete
Data
Accounting
Predicted sign
Positive
Original sample
1978–2001