Your professor finds a stock-trading rule that generates excess risk-adjusted returns. Instead of publishing the results, she keeps the trading rule to herself. This is most closely associated with
A) regret avoidance.
B) selection bias.
C) framing.
D) insider trading.

Question

Quizplus · Accepted Answer

Selection bias occurs when the researcher decides to withhold or select certain data or findings for publication based on the outcomes. In this case, the professor's choice to keep the trading rule secret instead of publishing it can lead to a bias in the publicly available information about stock-trading strategies, as only strategies that are less effective or already known might be published.

Your Professor Finds a Stock-Trading Rule That Generates Excess Risk-Adjusted