Absent Research, You Should Assume the Alpha of a Stock

question 37

Multiple Choice

Absent research, you should assume the alpha of a stock is

• A) zero.
• B) positive.
• C) negative.
• D) not zero.
• E) zero or positive.

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Definitions:

Cognitive Therapy

A form of psychotherapy that aims to change negative patterns of thinking, helping individuals to combat distressing emotions and maladaptive behaviors.

Freudian Techniques

Psychological methods based on the theories of Sigmund Freud, often focusing on unconscious processes, childhood experiences, and the interpretation of dreams to understand and treat psychological distress.

Depression

A common and serious mood disorder marked by persistent feelings of sadness, loss of interest, and a lack of energy.

Behavior Therapy

A therapeutic approach that focuses on changing unhealthy behaviors through conditioning techniques and environmental changes.