Research Studies Have Shown That

question 31

Multiple Choice

Research studies have shown that

• A)the correlation between how well a stock does one year and how well it does the next is significantly greater than zero.
• B)managed mutual funds generally outperform indexed mutual funds.
• C)people tend to be overconfident when making investment decisions.
• D)All of the above are correct.

---

Definitions:

Linear Trend Line

A straight line that best represents the data on a scatter plot, showing the direction and rate of a linear relationship between two variables.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, typically used to determine how the typical value of a dependent variable changes when any one of the independent variables is varied.

Forecast Equation

An equation used in statistical analysis to predict future values based on past data and trends, often involving variables and coefficients.

Percentage of Trend

A statistical measure that represents the direction and movement of data points over a specified period, often used to identify patterns in time series data.