Which of the Following Is Not an Anomaly That Has

question 15

Multiple Choice

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

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

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Definitions:

Competition

The rivalry among businesses to attract customers and achieve market dominance.

Quoting Prices

The action of providing a prospective customer with a price at which a seller agrees to sell goods or services.

Excess Capacity

The situation where a company's production facilities are capable of producing more than the demand for its products.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.