Ask Question
Social StudiesSocial Studies
2 December, 13:20

14. If you believe in the reversal effect, you should:

a. buy bonds in this period if you held stocks in the last period.

b. buy stocks in this period if you held bonds in the last period.

c. buy stocks this period that performed well last period.

d. short sell stocks this period that performed poorly last period.

e. buy stocks this period that performed poorly last period and go short stocks this period that performed well last period.

+2
Answers (2)
  1. 2 December, 14:43
    0
    e. buy stocks this period that performed poorly last period and go short stocks this period that performed well last period

    Explanation:

    The reversal effect deals with the principle of a stock performing poorly in a given period being likely to perform better in the next or coming period and a stock performing better being likely to perform poorly in the next period.

    This is why the stocks that performed poorly last period should be bought. and go short stocks this period that performed well last period and then go short.
  2. 2 December, 15:06
    0
    e. buy stocks this period that performed poorly last period and go short stocks this period that performed well last period.

    Explanation:

    If you believe in the reversal effect, you should:

    a. buy bonds in this period if you held stocks in the last period.

    b. buy stocks in this period if you held bonds in the last period.

    c. buy stocks this period that performed well last period.

    d. short sell stocks this period that performed poorly last period.

    e. buy stocks this period that performed poorly last period and go short stocks this period that performed well last period.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “14. If you believe in the reversal effect, you should: a. buy bonds in this period if you held stocks in the last period. b. buy stocks in ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Write about a time when your friends saw a situation or problem one way, but you saw it differently. How did you handle that?
Answers (1)
A group's national origin, language, and cultural or religious practices are referred to as
Answers (1)
Since Al's Auto Parts had trouble with its windshield wiper manufacturer in the past, it is requesting a guarantee from the company before it will place another order.
Answers (1)
Clyde is arrested for "tagging," or "visual terrorism." The arrest is an example of a (n) : 54) A) formal sanction B) norm C) informal sanction D) value
Answers (1)
Two ways that a deer depends on plants to survive
Answers (1)
New Questions in Social Studies
Emily is a psychologist who believes that many psychological difficulties are a result of a conflict between the id, ego, and superego. emily most likely endorses which type of therapy? cognitive-behavior cognitive psychoanalysis client-centered
Answers (1)
The assessment process that recognizes and interprets visible evidence at the crime scene as indicative of the personality type of the perpetrator is known as
Answers (1)
If a court case is heard before the u. s. supreme court, what is most likely true about the case? the case is about how the constitution is being interpreted or applied. the case concerns a dispute about state or federal criminal laws.
Answers (1)
People who do serious cooking are very concerned about how their pots and pans behave when heated and how effectively they transfer heat to the food in them.
Answers (1)
An economic system where both the state and individuals produce and distribute goods and services, such as the system found in Sweden and Denmark, is referred to as:
Answers (1)
Home » Social Studies » 14. If you believe in the reversal effect, you should: a. buy bonds in this period if you held stocks in the last period. b. buy stocks in this period if you held bonds in the last period. c. buy stocks this period that performed well last period. d.
Sign Up Forgot Password?