The tendency of poorly performing stocks and well-performing stocks in one period to continue their performance into the next period is called the ________.

A) fad effect
B) martingale effect
C) momentum effect
D) reversal effect

Momentum Effect

The tendency for securities that have performed well in the past to continue performing well in the future.

Martingale Effect

A theory in probability suggesting that past events do not influence future ones, often discussed in the context of gambling or investment strategies.

Fad Effect

A temporary period of high demand for a certain product or service, often without a basis in the product's qualities or utility.