Michel has developed a trading strategy for the Abitibi-Témiscamingue Market.He has observed that his strategy earns returns that are statistically significantly greater than the market.Should Michel start applying his trading strategy?
A)Yes, the tests show that its returns are statistically significantly greater than the market.
B)Not necessarily; the tests show that its returns are statistically significantly greater than the market.
C)Yes, the tests show that its returns are economically significantly greater than the market.
D)Not necessarily; the tests do not show whether the returns are economically significantly greater than the market.

Question

Quizplus · Accepted Answer

Statistical significance does not imply economic significance. Michel should assess whether the returns are economically significant before applying the strategy.

Michel Has Developed a Trading Strategy for the Abitibi-Témiscamingue Market