The regional directors of a major investment bank are discussing investment strategies for their respective countries.

a. As director of North American investments, describe to your foreign colleagues an investment strategy based on momentum.

b. As director of European investments, do you think such a momentum-based strategy will work in your markets? Why or why not?

c. As director of Latin American investments, do you think a momentum-based strategy will work in your markets? Why or why not?

d. Should momentum-based investment strategies continue to work if markets are efficient? Should investors continue to see above-average returns to momentum investing?