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Author Question: Which of the following statements is correct? (Read 105 times)

swande

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Which of the following statements is correct?

The long-term reversals and momentum prove that the stock market is highly efficient in the weak form.


Long-term reversals show that portfolios of stocks with poor past long-term performance (e.g., over the past 5 years) tend to do slightly better in the long-term future than the CAPM predicts, and vice versa.


Momentum reveals that stocks with strong performance in the short-term past (e.g., over the past 6 to 9 months) tend to do slightly worse in the short-term future than the CAPM predicts, and likewise for weak performance.


Strategies based on taking advantage of long-term reversals or short-term momentum can generate large excess returns, especially when transaction costs are considered.



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Marked as best answer by swande on Aug 7, 2023

Mynameisrandom

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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swande

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


amandalm

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Reply 3 on: Yesterday
:D TYSM

 

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