Examlex
Which of the following statements best illustrates the rational-comprehensive approach to decision making?
Abnormal Return
The difference between the actual return of an investment and the expected return given its risk profile and market performance.
Price Drift
The slow and incremental movement in the price of an asset, reflecting gradual changes in investors' valuation over time.
Contrarian Approach
An investment strategy that involves going against prevailing market trends or sentiments, buying underperforming assets, and selling when they perform well.
Abnormal Returns
Returns on a security that exceed or fall below what is anticipated based on market or model predictions, often attributed to unexpected events.
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