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

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Definitions:

Pollution

The contamination of natural environments by harmful substances or activities.

Environment Clean-up

The process of removing pollutants or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection and enhancement of the environment.

Negative Externality

A situation where the production or consumption of a good or service results in a harmful effect on unrelated third parties.

Market Equilibrium

Occurs when the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.