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Question 8-6CP

Essentials Of Investments
Found in: Page 261
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

A market anomaly refers to:

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.

The correct answer is ‘d’

See the step by step solution

Step by Step Solution


Usually considered as an exception, market anomalies are distortions in return contrary to the efficient market hypothesis.


As per the definition above, unexpected price behavior in themselves are anomalies.

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