Which of the Following Statements About Investment Strategies Is True

question 36

Multiple Choice

Which of the following statements about investment strategies is true? Constant proportion portfolio insurance is a:

• A) contrarian strategy, whereas constant mix is a momentum strategy.
• B) momentum strategy, whereas constant mix is a contrarian strategy.
• C) contrarian strategy as is constant mix.
• D) momentum strategy as is constant mix.

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Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency; in biology, the dying out of a species.

Commission

An instruction, command, or duty given to a person or group of people.

Fixed-ratio Schedule

This is a schedule of reinforcement where a response is rewarded only after a specified number of responses.

Operant Conditioning

A learning process where behavior is controlled by consequences, including reinforcements and punishments to increase or decrease the behavior's occurrence.