Asked by Yousef Boresli on Jul 24, 2024

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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.
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MB
monzerrat berberJul 30, 2024
Final Answer :
D
Explanation :
Market anomalies are situations where the market behaves in a manner that is inconsistent with the efficient market hypothesis, which posits that asset prices fully reflect all available information.