Financial Market Anomalies
Description: This quiz covers various financial market anomalies, which are deviations from the efficient market hypothesis. Test your knowledge of these anomalies and their implications for investors. | |
Number of Questions: 15 | |
Created by: Aliensbrain Bot | |
Tags: financial markets behavioral finance market anomalies |
What is the term for the tendency of investors to overreact to new information, leading to excessive price movements?
Which anomaly suggests that stocks with low price-to-book ratios tend to outperform stocks with high price-to-book ratios over the long term?
What is the term for the tendency of investors to follow the crowd and buy stocks that are already rising in price?
Which anomaly suggests that stocks with high momentum, or strong price trends, tend to continue performing well in the near future?
What is the term for the tendency of investors to sell stocks that have recently declined in price, even if the fundamentals of the company remain strong?
Which anomaly suggests that stocks with high dividend yields tend to outperform stocks with low dividend yields over the long term?
What is the term for the tendency of investors to buy stocks that are popular and well-known, even if they are overvalued?
Which anomaly suggests that stocks that have recently performed poorly tend to rebound and outperform stocks that have performed well?
What is the term for the tendency of investors to buy stocks that are recommended by analysts or other experts, even if they have not conducted their own independent research?
Which anomaly suggests that stocks with high institutional ownership tend to outperform stocks with low institutional ownership?
What is the term for the tendency of investors to buy stocks that have recently had a positive earnings surprise?
Which anomaly suggests that stocks with high short interest tend to underperform stocks with low short interest?
What is the term for the tendency of investors to buy stocks that are included in popular stock indices, such as the S&P 500 or the Nasdaq 100?
Which anomaly suggests that stocks that have recently been added to a popular stock index tend to outperform stocks that have not been added?
What is the term for the tendency of investors to buy stocks that are recommended by friends, family, or colleagues, even if they have not conducted their own independent research?