Even If Technical Analysis Is Accurately Predicted,commissions May Consume Any

question 21

True/False

Even if technical analysis is accurately predicted,commissions may consume any excess return the investor earns.

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Definitions:

Expected Market Rate

The anticipated rate of return on an investment as predicted by investors based on historical market data and trends.

Abnormal Return

Return on a stock beyond what would be predicted by market movements alone. Cumulative abnormal return (CAR) is the total abnormal return for the period surrounding an announcement or the release of information.

Mean-Variance Optimizers

Tools used in finance to allocate assets in a portfolio in a way that maximizes return for a given level of risk based on the expected returns and variances of those assets.

Fully Informed

A state or condition where all relevant information is known to all parties involved.