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If You Believe in the Reversal Effect, You Should

Question 2

Multiple Choice

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 poorly last period.
D) go short.
E) buy stocks this period that performed poorly last period and go short.

Correct Answer:

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