In Backtesting,computers Are Used to Examine the Composition and Returns

question 6

True/False

In backtesting,computers are used to examine the composition and returns of portfolios based on historical data in order to determine if the investment strategy would have worked in the past.

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Definitions:

Coase Theorem

An economic theory proposing that under conditions of no transaction costs, parties can negotiate and arrive at efficient resource allocation and solution to externalities regardless of initial property rights allocation.

Number Of People

A quantitative measure of the people involved or affected in a particular context.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a result of an economic transaction.

Producing Firm

An entity or company involved in the creation of goods or services to be offered to consumers.