A momentum investor should have which of the following philosophies about markets. Select one: a. Exchange...

A momentum investor should have which of the following philosophies about markets.

Select one:

a. Exchange traded funds are a more efficient investment vehicle compared with closed-end funds.

b. Past prices have no information content for future returns.

c. Any observable mispricings from deviating from the benchmark are subsumed by transaction costs.

d. Markets are perfectly efficient.

e. Investor expectations about prices may be biased due to behavioural factors.

Expert Solution

Answer;

Momentum investors seek also seek to analyze and if possible anticipate the behaviour of other investors in the market.Awareness of behavioral biases and investor emotions can significantly enhance the effectiveness of momentum in the market.Accordingly,the correct answer is option e.

jeff jeffy answered 2 years ago

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