The following are anomalies countering the efficient market hypothesis except
A)the small-firm effect.
B)the small-firm effectandthe earnings announcement puzzle.
C)the small-firm effect, the earnings announcement puzzle, and the new-issue puzzle.
D)trading rules based on patterns.

Question

Quizplus · Accepted Answer

Trading rules based on patterns are considered anomalies that counter the efficient market hypothesis, as they suggest that predictable patterns can be exploited for profit, which contradicts the idea that markets are efficient and all known information is already reflected in stock prices.

The Following Are Anomalies Countering the Efficient Market Hypothesis Except