Asked by Yousef Boresli on Jul 24, 2024
Verified
Market anomaly refers to ________.
A) an exogenous shock to the market that is sharp but not persistent
B) a price or volume event that is inconsistent with historical price or volume trends
C) a trading or pricing structure that interferes with efficient buying and selling of securities
D) price behavior that differs from the behavior predicted by the efficient market hypothesis
Market Anomaly
A situation where a financial market behaves in a way that contradicts the efficient market hypothesis, often leading to potential investment opportunities.
Efficient Market Hypothesis
The theory that it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.
- Comprehend the theory of market efficiency across multiple forms and its impact on strategies for investment.
Verified Answer
Learning Objectives
- Comprehend the theory of market efficiency across multiple forms and its impact on strategies for investment.
Related questions
Most Tests of Semistrong Efficiency Are ________ ...
Proponents of the EMH Think Technical Analysts ________ ...
If the US Capital Markets Are Not Informationally Efficient, ________ ...
According to the Semistrong Form of the Efficient Markets Hypothesis ...
Most Studies of Stock Market Efficiency Suggest That the Stock ...