The Findings of Jegadeesh and Titman (1993)when Looking at Stocks

question 5

True/False

The findings of Jegadeesh and Titman (1993)when looking at stocks in the USA in relation to findings about very strong prior positive or negative performance confer that a profitable momentum strategy appears viable and can be assessed by assuming a long position in the winner portfolio and a short position in the loser portfolio.

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Definitions:

Cognitive

Pertaining to mental processes such as thinking, learning, memory, and problem-solving.

Social Learning

The process of learning behaviors through the observation of others, rather than through direct experience.

Information Processing

The method by which individuals take in, consider, and utilize data or information, drawing heavily from cognitive psychology.

Classical Conditioning

A process of acquiring knowledge through the connection of a stimulus present in the surroundings with one that occurs spontaneously.