Your Professor Finds a Stock-Trading Rule That Generates Excess Risk-Adjusted

question 63

Multiple Choice

Your professor finds a stock-trading rule that generates excess risk-adjusted returns. Instead of publishing the results, she keeps the trading rule to herself. This is most closely associated with

• A) regret avoidance.
• B) selection bias.
• C) framing.
• D) insider trading.

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Definitions:

Masked Design

A research design in which participants do not know which treatment group they are in to prevent bias; also known as a blinded design.

Placebo

An inert or non-therapeutic substance given to a control group in clinical trials to assess the psychological impact of receiving a treatment.

Natural

Naturally occurring and not manufactured or created by human beings.

Biased

Showing an unfair preference or prejudice for or against something or someone.