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Homework answers / question archive / which of the following statements are true
which of the following statements are true. (multiple statements can be true)
1. The phenomenon of time series reversal always causes interruptions to the momentum-type investors
2. The phenomenon of time series reversal benefits the investor who uses the opposite signals of popular strategies
3. A contrarian investor only invests in SELL-Signals of a momentum strategy
4. A contrarian investor opens BUY (Long) positions when other investors open SELL (Short) positions.
5. A contrarian investor always opens short positions when other strategies open a long position
Answer:
All the given statements are TRUE.
1. The phenomenon of time series reversal always causes interruptions to the momentum-type investors : TRUE
2. The phenomenon of time series reversal benefits the investor who uses the opposite signals of popular strategies: TRUE
3. A contrarian investor only invests in SELL-Signals of a momentum strategy: TRUE
4. A contrarian investor opens BUY (Long) positions when other investors open SELL (Short) positions: TRUE
5. A contrarian investor always opens short positions when other strategies open a long position : TRUE
