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 outperform large cap stocks
D) equities in general tend to increase

Question

Quizplus · Accepted Answer

DThe January effect is a hypothesis that there's a seasonal anomaly in the financial market where stock prices, especially those of small caps, increase more than in other months. This is due to year-end tax considerations and the buying surge that typically happens when investors return to the market in January. Thus, small cap stocks tend to outperform large cap stocks (C), and equities in general tend to increase (D).

One of the Calendar Effect Market Anomalies Indicates That in Value