Mean Reversion Refers to the Fact That

question 75

Multiple Choice

Mean reversion refers to the fact that

• A)small firms have higher than average returns.
• B)stocks that have had low returns in the past are more likely to do well in the future.
• C)stock returns are high during the month of January.
• D)stock prices fluctuate more than is justified by fundamentals.

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Definitions:

Silver Oxide

A chemical compound of silver and oxygen that's used in some batteries and as a mild oxidizing agent in organic synthesis.

Methyl Iodide

A chemical compound with the formula CH3I, used as a methylating agent in organic synthesis.

Keto-enol Tautomerization

Keto-enol tautomerization is a chemical equilibrium between a ketone (or aldehyde) and an enol (an alcohol directly bonded to a carbon-carbon double bond), where hydrogen atoms and double bonds are redistributed.

6-phosphate Ester

Refers to a compound containing a phosphate group attached to the sixth carbon of a sugar or organic molecule, commonly involved in energy transfer and signaling pathways.