The January Effect

question 6

Multiple Choice

The January effect:

• A)does not occur in the domestic market every year.
• B)occurs every year but only for large-company stocks.
• C)occurs every year but only for small-company stocks.
• D)is unaffected by institutional investors.
• E)is unique to the United States.

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Definitions:

Death Benefit

The sum paid to a beneficiary upon the insured’s death, provided through a life insurance policy.

Savings Plan

A program that encourages regular saving by setting aside a certain amount of income for future use, often with tax advantages or interest accrual.

Actuarially Determined

Calculated based on actuarial methods and assumptions, often referring to pension plan contributions or insurance risk assessments.

Pension Funds

Investment pools that collect and invest contributions from workers and employers to provide retirement benefits to the workers.