One of the calendar effect market anomalies indicates that ________ in value during January.
A)large cap stocks tend to decline
B)equities in general tend to decline
C)small cap stocks tend to increase
D)equities in general tend to increase

Question

Quizplus · Accepted Answer

The January Effect is a market anomaly that suggests that small-cap stocks tend to outperform large-cap stocks in January. This is believed to be due to year-end tax-loss harvesting by investors, which can push down the prices of small-cap stocks, creating a buying opportunity for investors in the new year. As a result, small-cap stocks tend to experience higher returns in January.

One of the Calendar Effect Market Anomalies Indicates That ________