The January Effect

question 16

Multiple Choice

The January effect

• A) largely disappeared after receiving attention in the 1980s.
• B) refers to the gap between futures prices and the prices of the underlying securities that occurs each January.
• C) was stronger during the 1980s than during previous decades.
• D) is the observation that stocks tend to be sold off in January.

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Definitions:

Marries

The act of entering into a legal or spiritual union with another person, recognized by society or religious institutions as a partnership.

Scientific Method

A systematic procedure for collecting and analyzing evidence, critical in the exploration and understanding of the natural world.

Intolerance

The unwillingness to accept views, beliefs, or behavior that differ from one's own.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of values, commonly used values include the mean, median, and mode.