Mean reversion refers to the fact that

A) small firms have higher than average returns.
B) stocks that have had low returns in the past are more likely to do well in the future.
C) stock returns are high during the month of January.
D) stock prices fluctuate more than is justified by fundamentals.

B

Economics

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Which of the following can always be used to determine the outcome when there are multiple Nash equilibria?

A) the Pareto Criterion B) cheap talk C) Both A and B D) None of the above.

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Contracts can avoid transaction costs

Indicate whether the statement is true or false

Economics