This study seeks to explain the leverage effect in UK stock returns by reference to the return volatility, leverage and size characteristics of UK companies. A leverage effect is found that is stronger for smaller companies and has greater explanatory power over the returns of smaller companies....

The aim in this paper is to replicate and extend the analysis of visual technical patterns by Lo et al. (2000) using data on the UK market. A non?parametric smoother is used to model a nonlinear trend in stock price series. Technical patterns, such as the 'head?and?shoulders' pattern, that are...