Loyalists Believe That the Long-Term Patterns in Returns Are Induced

Multiple Choice

Loyalists believe that the long-term patterns in returns are induced by institutional and/or research method problems such that the patterns are artificial and therefore not exploitable.Examples are:

A) changes in risk that are not accounted for when estimating abnormal returns
B) differences in firm size
C) problems in correctly estimating beta risk over different return intervals
D) all of these choices