CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

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
Correct Answer: D

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.
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