CAS Exam 9 Spring 2013, Question 5
Study guide: Exam 9
Consider the following graphs in the context of the semi-strong form of the efficient market hypothesis:
Part a (0.5 points)
Describe the market anomaly associated with Graph A.
Part b (0.5 points)
Describe the market anomaly associated with Graph B.
Part c (1 point)
For each anomaly described in part a. and part b. above, describe an information-processing error that would cause the anomaly.
Part d (0.5 points)
For each graph describe, either in words or graphically, what it would look like without the anomaly identified in part a. and in part b. above.
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution