Loyalists Believe That the Long-Term Patterns in Returns Are Induced

question 35

Multiple Choice

Loyalists believe that the long-term patterns in returns are induced by institutional and/or research method problems such that the patterns are artificial and therefore not exploitable.Examples are:

• A) changes in risk that are not accounted for when estimating abnormal returns
• B) differences in firm size
• C) problems in correctly estimating beta risk over different return intervals
• D) all of these choices

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Definitions:

Social Dominance Orientation

A personality trait which predicts social and political attitudes, emphasizing a preference for hierarchy in the social structure and domination over lower-status groups.

Need for Structured Knowledge

The desire or preference for organized and coherent information in order to understand complex phenomena or concepts better.

Right-Wing Authoritarianism

A personality and ideological framework characterized by submission to authority, aggression towards out-group members, and adherence to societal conventions.

Need for Structured Knowledge

A cognitive requirement where individuals seek organized and coherent information to understand complex phenomena or situations.