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What can an investor do to avoid momentum crashes? Choose the strategy that avoids momentum crashes as much as possibly but which is still expected
What can an investor do to avoid momentum crashes? Choose the strategy that avoids momentum crashes as much as possibly but which is still expected to deliver positive abnormal returns.
A. | Buy winner stocks and short-sell value stocks. | |
B. | Buy growth stocks and short-sell loser stocks | |
C. | Buy winner stocks and short-sell the market portfolio. | |
D. | Buy the market portfolio and short-sell loser stocks | |
E. | Use an industry-momentum strategy that buys the best performing industries and shorts the worst performing industries. | |
F. | Rebalance the strategy every month. |
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