Question
Which of the following is not a documented stock market anomaly (i.e., a strategy that appears to deliver positive risk-adjusted profits)? A. Invest in small
Which of the following is not a documented stock market anomaly (i.e., a strategy that appears to deliver positive risk-adjusted profits)?
A. | Invest in small stocks, especially in January. | |
B. | Invest in 'growth' stocks with above average earnings growth over past 5 years. | |
C. | Invest in the stock market on days when Congress is out of session, but invest in riskless securities when Congress is in session. | |
D. | Exploit momentum by buying (selling) stocks that have increased (decreased) in price over the last 3-12 months.
| |
E. | Invest in 'value' firms with high dividend yields (D/P), book-to-market ratios (B/M), or low P/E ratios. |
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