CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Robert Haugen, in The New Finance: The Case against Efficient Markets, argued that the evidence implies investors initially underestimate firms showing strong performance and then overreact. Haugen was referring to the anomaly of ______.
A. market momentum
B. earning surprises
C. the value effect
Explanation: Haugen concluded that the market overreacts, with a lag, and that "we apparently have a market that is slow to overreact."

User Contributed Comments 3

User Comment
BladeMage3 Is this really earning surprise? I thought this was A.
chcarnes Same blademage
thanhb91 Robert Haugen is not even mention in the textbook, how do we suppose to know?
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