According to Finance Theory, a Financial Market Anomaly Occurs When

question 33

Essay

According to finance theory, a financial market anomaly occurs when the performance of a stock or a group of stocks deviates from the assumptions of the efficient market hypothesis. Katz has classified anomalies into four basic types.
a. What are these four types of anomalies?
b. Give examples of each.

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Definitions:

Private Schools

Schools that operate independently of the public school system, often funded through tuition fees, private contributions, and endowments.

Public School

A school that is funded and run by the government and provides free education to students.

Budget Constraint

The limit on the consumption bundles that a consumer can afford given the prices of goods and the consumer's income.

Hot Dogs

A type of cooked sausage, traditionally grilled or steamed and served in a partially sliced bun.