You have an idea for a trading strategy. The best way to check if the...

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Accounting

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You have an idea for a trading strategy. The best way to check if the strategy is useful is to: Ask your friends Throw money at it and see what happens Eyeball historical charts to see how it would have performed Construct a rigorous back testing model and test it against historical data Question 16 10 pts You are back testing a promising-looking trading strategy. To decide whether it is good, it's best to compare the return it generates to: Cash in mattress Buy and hold return on the underlying asset class Return on a broad market index Treasury bill yield

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