Which of the Following Statements Regarding Momentum Strategies Is true

question 33

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 the above statements are true

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Definitions:

Indifference Curve

A graph representing different bundles of goods among which a consumer is indifferent, showing trade-offs and preferences.

Consumer

An individual or organization that uses economic goods or services.

Criminal

A person who has committed a crime or has been legally convicted of a crime.

Steal

The act of taking something without permission or legal right and without intending to return it.