Which of the Following Is Not an Anomaly That Has

question 7

Multiple Choice

Which of the following is not an anomaly that has been noted to the efficient markets hypothesis?

• A)Investor interest varies according to the market the share is traded in.
• B)Market prices appear to react to more than just accounting information.
• C)Returns of firms followed by analysts are superior to those that are not.
• D)The returns of small listed firms appear to be smaller than those of larger firms.

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Definitions:

Regulatory Commissions

Government agencies responsible for overseeing and regulating specific industries or economic sectors to ensure fair practices and protect public interests.

Food and Drug Administration

A federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, and veterinary products.

Public Interest Theory

A theory suggesting that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Industrial Regulation

Government policies and rules aimed at regulating and controlling industry practices to promote fair competition, protect consumer interests, and prevent market abuses.