Which of the Following Best Defines Mean Reversion

question 20

Multiple Choice

Which of the following best defines mean reversion?

• A)Returns for securities tend to move toward higher performance when returns are examined over shorter time frames
• B)Returns for securities tend to move toward lower performance when returns are examined over shorter time frames
• C)Returns for securities tend to move toward average performance when returns are examined over longer time frames
• D)All of the above
• E)None of the above

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Definitions:

Conflict of Interest

A situation where an individual's or entity's personal interests could potentially interfere with their professional duties or responsibilities.

Representing

Acting on behalf of someone or something, or serving as a symbol or exemplar of a certain quality or idea.

Injures

Causes harm or damage to someone in a physical, emotional, or legal sense.

Work Product Doctrine

A legal principle that protects materials prepared by attorneys in anticipation of litigation from being disclosed to the other party.