A Fundamental Tenet of the Contrarian Investment Strategy Is the Notion

question 19

Multiple Choice

A fundamental tenet of the contrarian investment strategy is the notion that

• A) all stock returns are mean reverting.
• B) certain stocks outperform others during different stages of the business cycle.
• C) value stock investing is superior to growth stock investing.
• D) growth stock investing is superior to value stock investing.
• E) None of these are correct.

---

Definitions:

Intelligence Quotient

A measure of a person's intellectual abilities in relation to the average performance of individuals in the same age group.

Mental Age

A measure of an individual's mental aptitude based on the average abilities of people at a certain chronological age.

Chronological Age

The actual age of a person or object, measured in years from the date of birth or creation.

Monozygotic Twins

Twins who originate from a single fertilized egg, making them genetically identical.