Returns on Mondays Are Generally Much More Negative Than Returns

question 66

Essay

Returns on Mondays are generally much more negative than returns on other days of the week.How would you best explain this? (Give only one reason,and specify whether it is consistent with notions of market efficiency.)

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Definitions:

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.