Examples of Anomalies Providing Contrary Evidence to the Semi-Strong Efficient

question 57

Multiple Choice

Examples of anomalies providing contrary evidence to the semi-strong efficient market hypothesis include studies of all of the following except

• A) Quarterly earnings reports.
• B) Price earnings ratios.
• C) Total market value.
• D) Stocks ranked by Standard & Poor's.
• E) The January effect.

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Definitions:

Purchasing Power Risk

The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.