As you go from days to weeks and even months, the serial correlation in returns becomes positive. This momentum effect suggests that stocks that have done well will continue to do well, and stocks that have done badly will continue to underperform. If you decide to play the momentum game, which of the following groups of stocks offers the most promise of continuing momentum?

Select one:

a.

Large market cap stocks where momentum has been accompanied by low trading volume.

b.

Small market cap stocks where momentum has been accompanied by low trading volume.

c.

Large market cap stocks where momentum has been accompanied by high trading volume.

d.

Small market cap stocks where momentum has been accompanied by high trading volume.