The efficient market hypothesis has some trouble explaining the existence of market anomalies.

Question

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The efficient market hypothesis (EMH) posits that all available information is already reflected in stock prices, making it impossible to consistently achieve higher returns. Market anomalies, such as the January effect or momentum investing, challenge this view by suggesting that predictable patterns can lead to abnormal returns, indicating that markets may not always be fully efficient.

The Efficient Market Hypothesis Has Some Trouble Explaining the Existence