Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have an idea for a trading strategy. The best way to check if the strategy is useful is to: Ask your friends Throw money
You have an idea for a trading strategy. The best way to check if the strategy is useful is to: Ask your friends Throw money at it and see what happens Eyeball historical charts to see how it would have performed Construct a rigorous back testing model and test it against historical data Question 16 10 pts You are back testing a promising-looking trading strategy. To decide whether it is good, it's best to compare the return it generates to: Cash in mattress Buy and hold return on the underlying asset class Return on a broad market index Treasury bill yield
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started