Momentum Investing Can Be Described as

question 116

Multiple Choice

Momentum investing can be described as

• A) consistent with the efficient markets hypothesis.
• B) similar to mean reversion.
• C) follow the picks of investors who have been successful in the past.
• D) the trend is your friend.

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Definitions:

Profits

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Output

The total amount of goods or services produced by a company, industry, or economic system.

Marginal Costs

The additional cost incurred to produce an extra unit of a product or service.

Average Costs

The total costs of production divided by the number of units produced, representing the cost per unit.