he tendency of poorly performing stocks and well-performing stocks in one period to continue their performance into the next period is called the ________________.A. fad effectB. martingale effectC. momentum effectD. reversal effect

Question

25-10-2019
Business

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he tendency of poorly performing stocks and well-performing stocks in one period to continue their performance into the next period is called the ________________.A. fad effectB. martingale effectC. momentum effectD. reversal effect

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VirginiaFelix VirginiaFelix · Answer 1 · 2019-10-25T16:52:23+02:00

Answer:

The tendency of poorly performing stocks and well -performing stocks in one period to continue their performance into the next period is called the momentum effect. Letter C

Explanation:

The momentum effect is a quite usual market phenomenon by which asset prices follow a trend for a rather long time. This can mirror economic evolutions, but in some cases it brings a growing discrepancy between prices and fundamental values.