The January Effect

question 16

Multiple Choice

The January effect

• A) largely disappeared after receiving attention in the 1980s.
• B) refers to the gap between futures prices and the prices of the underlying securities that occurs each January.
• C) was stronger during the 1980s than during previous decades.
• D) is the observation that stocks tend to be sold off in January.

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Definitions:

Confidence Level

The probability that the value of a parameter falls within a specified range of values, often associated with a confidence interval.

Confidence Interval

A range of values derived from sample data that is likely to contain the true population parameter with a specified level of confidence.

Population Mean

The average value of all elements in a population.

Population Values

The actual numerical values representing a characteristic of every individual member of a population.