Exhibit 1.11 provides some results from an empirical research study that examined the relation between changes in firms' earnings and annual market-adjusted stock returns. Suppose exactly 12 months ago, you and your friend each invested $10,000 in the stock of a particular company. Fortunately, you invested in a company that experienced an increase in annual earnings this year, but unfortunately, your friend invested in a different company that experienced a decrease in annual earnings.