Which One of the Following Statements Describes an Investment Strategy

question 66

Multiple Choice

Which one of the following statements describes an investment strategy that may lead to profitable results based on current research findings?

• A) selling stocks as soon as positive earnings surprises are announced
• B) selling stocks on Mondays only
• C) selling small-company stocks in December and repurchasing them in February
• D) selling stocks on the 25^th of the month and repurchasing them on the 5^th of the following month
• E) buying stocks with relatively low P/E ratios

---

Definitions:

Opponent-Process Theory

A psychological and neurological model that explains how the perception of colors results from opposing neural processes.

Chromatic/Achromatic

Refers to colors with hue (chromatic) and without hue (achromatic), such as black, white, and grays.

Opponent-Process Pairs

A theory suggesting that the human visual system interprets colors in an antagonistic way, through pairs of colors opposite each other on the color spectrum.

Young-Helmholtz Theory

A theory of color vision proposing that the human eye perceives color because it has three types of receptors, each sensitive to red, green, or blue light.