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Basic Question 6 of 20
A market anomaly refers to ______.
B. a price or volume event that is inconsistent with historical price or volume trends
C. a trading or pricing structure that interferes with efficient buying and selling of securities
D. price behavior that differs from the behavior predicted by the efficient market hypothesis
A. an exogenous shock to the market that is sharp but not persistent
B. a price or volume event that is inconsistent with historical price or volume trends
C. a trading or pricing structure that interferes with efficient buying and selling of securities
D. price behavior that differs from the behavior predicted by the efficient market hypothesis
User Contributed Comments 3
| User | Comment |
|---|---|
| kalps | Market anomaly - price behaviour that differs from the behaviour predicted by the EMH |
| kutta2102 | The CFA material differentiates anomaly and mispricing very well - mispricing is when returns are different from 'expected' at a point in time. Anomaly is when this happens persistently. |
| gazelle | Thanks kutta2102. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe market anomalies
CFA® 2024 Level I Curriculum, Volume 3, Module 3.