For Technical Trading Rules to Generate Returns That Are Superior

question 3

Multiple Choice

For technical trading rules to generate returns that are superior to a buy-and-hold strategy,net of transaction costs,the market would have to be

• A) Rising.
• B) Falling.
• C) Inefficient.
• D) Overvalued.
• E) Undervalued.

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Definitions:

Inputs

Inputs refer to the resources, information, or efforts that are used or required to achieve a task, process, or project.

Equity Theory

A concept in social psychology that posits individuals determine the fairness of their job benefits and rewards by comparing themselves to others in similar situations.

Performance Feedback

The process of providing individuals with information regarding their performance level, often with suggestions for improvement.

Optimal Frequency

The most efficient or effective rate at which a particular operation, process, or activity is carried out for desired results.