Question: this is the question which the prof gave us i think he need a graf Question 4 Question There are four stocks: A, B, C,
Question 4 Question There are four stocks: A, B, C, and D. The mean returns of these stocks in the previous 6-month were: Ra=0.3, Ro=0.1, Rc=0.05, Ro=0.35. Suppose these stocks exhibit short-term momentum and long-term reversals. Please draw a graph depicting the future developments of these stocks. What's your trading strategy you do if you believe there is a price momentum to each of these stocks? What's your trading strategy if you believe there is an over-reaction and thus return reversals? Question 4 Question There are four stocks: A, B, C, and D. The mean returns of these stocks in the previous 6-month were: Ra=0.3, Ro=0.1, Rc=0.05, Ro=0.35. Suppose these stocks exhibit short-term momentum and long-term reversals. Please draw a graph depicting the future developments of these stocks. What's your trading strategy you do if you believe there is a price momentum to each of these stocks? What's your trading strategy if you believe there is an over-reaction and thus return reversals? Question 4 Question There are four stocks: A, B, C, and D. The mean returns of these stocks in the previous 6-month were: Ra=0.3, Ro=0.1, Rc=0.05, Ro=0.35. Suppose these stocks exhibit short-term momentum and long-term reversals. Please draw a graph depicting the future developments of these stocks. What's your trading strategy you do if you believe there is a price momentum to each of these stocks? What's your trading strategy if you believe there is an over-reaction and thus return reversals? Question 4 Question There are four stocks: A, B, C, and D. The mean returns of these stocks in the previous 6-month were: Ra=0.3, Ro=0.1, Rc=0.05, Ro=0.35. Suppose these stocks exhibit short-term momentum and long-term reversals. Please draw a graph depicting the future developments of these stocks. What's your trading strategy you do if you believe there is a price momentum to each of these stocks? What's your trading strategy if you believe there is an over-reaction and thus return reversals
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