The tendency when the ________ performing stocks in one period are the best performers in the next and the current ________ performers are lagging the market later is called the reversal effect.
A) worst; best
B) worst; worst
C) best; worst
D) best; best

Question

Quizplus · Accepted Answer

The reversal effect refers to the phenomenon where stocks that performed poorly in one period tend to perform well in the subsequent period, and vice versa. This suggests a tendency for stock performance to reverse over time.

The Tendency When the ________ Performing Stocks in One Period