If you believe in the reversal effect,you should
A)sell bonds in this period if you held stocks in the last period.
B)sell stocks in this period if you held bonds in the last period.
C)sell stocks this period that performed well last period.
D)go long.
E)C and D

Question

Quizplus · Accepted Answer

The reversal effect suggests that assets that performed well in the previous period will perform poorly in the next period, so you should sell stocks that performed well last period.

If You Believe in the Reversal Effect,you Should