Based on the Studies of NYSE Stock Prices, an Investor

question 66

Multiple Choice

Based on the studies of NYSE stock prices, an investor should

• A) sell late on Friday.
• B) buy early Monday morning.
• C) sell small firms in late December.
• D) buy large firms in late December.

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Definitions:

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players.

Reward/Risk Ratio

A metric used to compare the potential returns of an investment to its potential losses.

Expected Return

The anticipated return on an investment, based on historical data or probabilistic estimates of future performance.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to its issuer and not related to wider market movements.