Use the Table Below to Answer the Following Questions

question 142

Multiple Choice

Use the table below to answer the following questions.
Table 3.1.1
-Refer to Table 3.1.1.Between 2015 and 2016,the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________.

• A)rose;did not change
• B)rose;fell
• C)fell;rose
• D)fell;fell
• E)fell;did not change

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Definitions:

Neglected-firm Effect

A phenomenon where lesser-known, smaller companies may outperform larger companies because they receive less attention from analysts.

January Effect

A seasonal increase in stock market prices that typically occurs during the month of January, often attributed to the buying of stocks that were sold at the end of the previous year for tax purposes.

P/E Effect

The P/E effect is a market anomaly observed where stocks with lower Price-to-Earnings (P/E) ratios tend to outperform those with higher P/E ratios over time.

Strong-form Efficiency

A market hypothesis suggesting that prices fully reflect all available information, both public and private, making it impossible for investors to consistently achieve higher returns.