Which of the following are not good explanations for the Weekend Effect? Select all that apply. a. Stock prices tend to decrease during the weekend, when people aren’t trading. b. The difference between Friday and Monday returns is simply due to random chance. c. Traders are unwilling to carry long positions into the weekend. d. Stocks tend to trade down during the course of the day on Mondays.
Which of the following are not good explanations for the Weekend Effect? Select all that apply. a. Stock prices tend to decrease during the weekend, when people aren’t trading. b. The difference between Friday and Monday returns is simply due to random chance. c. Traders are unwilling to carry long positions into the weekend. d. Stocks tend to trade down during the course of the day on Mondays.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following are not good explanations for the Weekend Effect? Select all that apply.
a. Stock prices tend to decrease during the weekend, when people aren’t trading.
b. The difference between Friday and Monday returns is simply due to random chance.
c. Traders are unwilling to carry long positions into the weekend.
d. Stocks tend to trade down during the course of the day on Mondays.
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