The January Effect Can Be Largely Attributed to the Exceptional

question 16

Multiple Choice

The January effect can be largely attributed to the exceptional performance of:

• A) low P/E stocks in January.
• B) winner stocks in January.
• C) loser stocks in January.
• D) small stocks in January.

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Definitions:

DOJ

The Department of Justice, a federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Concerted Action Requirement

A legal criterion necessitating a cooperative or joint effort among individuals or entities to achieve a particular outcome.

Conscious Parallelism

A situation where firms in an industry independently choose similar pricing, production, or marketing practices without explicit agreement.

Wholly Owned Subsidiaries

Companies fully controlled by another company, the parent company, because the parent company owns 100% of the subsidiary's shares.