Which Statement Is Correct

question 70

Multiple Choice

Which statement is correct?

• A) The momentum factor refers to the tendency for stock price changes to reverse.
• B) The momentum factor refers to the tendency for stock price changes to persist for a while and then revert.
• C) The momentum factor implies that stock prices are rather like a pendulum.
• D) The momentum factor is inconsistent with the strong form of the efficient market hypothesis.

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Definitions:

Consumer Purchase Decision

The process a consumer goes through in choosing a particular product or service, influenced by internal and external factors.

Financial Transaction

An agreement or exchange between two parties involving the transfer of money, goods, services, or property.

Alternative Evaluation

The process in which consumers assess various products, brands, or services to make an informed decision before making a purchase.

Consumer Purchase Decision

The process through which a consumer goes to select, purchase, use, and dispose of goods or services.