Some Studies of the Stock Market Have Concluded That a "Weekend

question 42

Essay

Some studies of the stock market have concluded that a "weekend effect" exists. These
studies found that, on average, the stock market tends to fall on Mondays, relative to
the preceding Friday's close price.
Is this a violation of the concept of efficient markets? Explain.

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Definitions:

Nonverbal Signal

A form of communication without words, such as gestures, facial expressions, body language, and other visual cues, that conveys a message.

Nonverbal Signals

Nonverbal signals include body language, gestures, facial expressions, and other forms of physical communication that convey feelings and intentions without words.

Spoken Word

Involves the expression or articulation of thoughts, ideas, or emotions through verbally communicated words as opposed to written language.

Communication Validity

The degree to which messages or information are accurate and reliable in the context of communication.