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Basic Question 9 of 20
Calendar anomalies that raises issues about the validity of the semi-strong form of the EMH include ______
B. a day-of-the-week effect, where returns are unusually high from Monday opening to Monday close in January, and unusually low the remainder of the year.
C. intraday effects, where large firms tend to experience unusually high returns the first hour of trading on Monday.
D. intraday effects, where small firms tend to experience unusually low returns the first hour of trading on Friday.
A. a weekend effect, where returns are excessively high from Friday opening to Friday close.
B. a day-of-the-week effect, where returns are unusually high from Monday opening to Monday close in January, and unusually low the remainder of the year.
C. intraday effects, where large firms tend to experience unusually high returns the first hour of trading on Monday.
D. intraday effects, where small firms tend to experience unusually low returns the first hour of trading on Friday.
User Contributed Comments 8
| User | Comment |
|---|---|
| kalps | So the answer is A not B |
| LogicMan | It is B. The weekend effect is from Friday to Monday, not from Friday opening to Friday close as in the question. |
| haarlemmer | Do we have to memo them? |
| tssverma | Correct answer B with explanation of as to why A is incorrect is given. So there is no need to memo |
| rethan | Can someone explain to me what the ingtraday effect is? |
| davcer | january is the key |
| Shaan23 | This one too...WHy is C incorrect. It says intraday is the effect over the weekend in the solution. C says the first hour of monday. It should be right then? |
| ascruggs92 | I think you are reading that incorrectly. Intra-day simply means "within a day." High returns in the first hour of trading on a Monday may be the result of a weekend effect, but C. is still incorrect because it does not refer to a specific Monday. A calendar anomaly is anomaly related to a specific time of the year such as a month, a week in a month, or even a holiday. Example: The Super Bowl effect |
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Learning Outcome Statements
describe market anomalies
CFA® 2024 Level I Curriculum, Volume 3, Module 3.