Which of the Following Statements Regarding Momentum Strategies Is TRUE

question 36

Multiple Choice

Which of the following statements regarding momentum strategies is TRUE?

• A) Price momentum is a fundamental strategy.
• B) Earnings momentum is a technical strategy.
• C) Price momentum and earnings momentum strategies will often result in identical portfolio strategies and holdings.
• D) The earnings momentum investor will most likely acquire stocks for companies that have positive earnings surprises.
• E) All of these are correct.

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Definitions:

Cash Payments

Money that is paid out by a business, often for expenses, debt, or purchases.

Investing Section

Part of a company's cash flow statement that shows cash inflows and outflows related to investments in securities, property, and equipment.

Financing Section

A part of financial statements that includes activities related to issuing debt, repayment of debt, issuing equity, and paying dividends.

Cash Outflow

Pertains to the movement of money out of a business, primarily through expenses, payments to creditors, or investments, leading to a decrease in cash balance.