f the following are potential explanations that have been proposed for the January Effect? Select all that apply. A. Tax loss selling B. IRS wash sale rule C. Psychological drivers, completely unrelated to the market D. Window dressing
f the following are potential explanations that have been proposed for the January Effect? Select all that apply. A. Tax loss selling B. IRS wash sale rule C. Psychological drivers, completely unrelated to the market D. Window dressing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. Which of the following are potential explanations that have been proposed for the January Effect? Select all that apply.
A. Tax loss selling
B. IRS wash sale rule
C. Psychological drivers, completely unrelated to the market
D. Window dressing
2.
If a certain asset commands a liquidity premium, what does this imply?
A. It has a higher expected return than less liquid similar assets
B. It is more sensitive to liquidity shocks than similar assets
C. It is more difficult to trade than similar assets
D. It has a higher price than less liquid similar assets '
dont copy other's answer, Select all that apply
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