discussion

Business & Finance
Tutor: None Selected Time limit: 1 Day

There are many theories that attempt to explain stock market behavior. discuss market anomalies that contradict the efficient market hypothesis.

Aug 7th, 2015

Hello friend...Thank you for the opportunity to help you with your question :-)

Literary meaning of an anomaly is a strange or unusual occurrence. The word anomaly refers to scientific and technological matters.Anomalies are the indicator of inefficient markets, some anomalies happen only once and vanish, while others happen frequently, or continuously  defined market anomalies as “an anomaly is a deviation from the presently accepted paradigms that is too widespread to be ignored, too systematic to be dismissed as random error, and too fundamental to be accommodated by relaxing the normative system.” Anomalies can be divided into three basic types.,

1.Fundamental anomalies - Fundamental anomalies include Value anomalies and small cap effect, Low Price to Book,high dividend yield, Low Price to Sales (P/S),Low Price to Earnings (P/E) 

2.Technical anomalies- "Technical Analysis" includes no. of analyzing techniques use to forecast future prices of stocks on the basis of past prices and relevant past information. Commonly technical analysis use techniques including strategies like resistance support, as well as moving averages.

3.Calendar or seasonal anomalies - Calendar anomalies are related with particular time period i.e. movement in stock prices from day to day, month to month, year to year etc .these include weekend effect, turn of the month effect, year-end effect etc 


Here is the complete answer! Please let me know if you need any clarification. Please best with a 5*. Thank you and Godbless!!!
Aug 7th, 2015

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Aug 7th, 2015
...
Aug 7th, 2015
Dec 8th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer