Topic for Integrative Analysis : Market Efficiency and Market Anomalies ( In financial markets , anomalies refer to situations when a security or group of securities performs contrary to the notion of...

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Topic for Integrative Analysis : Market Efficiency and Market Anomalies







(In financial
markets,
anomalies
refer to situations when a security or group of securities performs contrary to the notion of efficient
markets, where security prices are said to reflect all available information at any point in time.)







Discuss this specific topic, from a set of at least 5 journal articles from
2019 and 2020 only,
not before that. (to be listed in the reference section).


These chosen articles should include
more up-to-date studies and researches on this specific topic.








Close the paper with a summary of the topic.






Cover the following points in the paper :







  • Briefly summarizing the key points in each article.



  • Including the authors’ opinion of the articles and/or links to their personal experiences.







  • Research gaps in the articles (what's missing?)



  • Critical evaluation of the articles (what's right? what's wrong?)





  • A potential empirical contribution from the articles chosen, to the topic in question (a bright idea!)



  • A potential theoretical contribution from the articles chosen, to the topic in question (a bright idea!)



  • Ways to extend one or more articles into another paper (extensions)



  • Ways to bridge two or more of the articles (bridges across)



  • Because integrative analyses may lead to research papers, you are expected to behave ethically in respecting the “idea ownership rights” of others.

Answered Same DayJul 03, 2021

Answer To: Topic for Integrative Analysis : Market Efficiency and Market Anomalies ( In financial markets ,...

Sumit answered on Jul 04 2021
153 Votes
The author in the article has challenged the existence of market efficiency because of the existence of Market Anomalies. The author has used different market anomalies and different theories of behavioral finance to explain the existence of these market anomalies. The author is of the opinion that these strategies should be adopted by the investors to evaluate their portfolio and by policy makers while framing policies to curb fluctuations in the market.
My take: Even I believe that the traditional notion of existence of market efficiency is wrong, since it assumes that market price is calculated by taking into consideration all the relevant and updated information. In the real-world Information is limited to few and most of the trading takes place due to behavioral finance.
The author in the second article has used the example of stock market crash on October 19, 1987, also referred to as “Black Monday” when a sudden crash started in Hong Kong but spread throughout the world made Dow Jones Industrial Average drop by more than 22% in just one day. The author emphasized that had a market been efficient no one person would have been able to outperform the market.
My take: The author has used very simple language to explain the concept of Market Anomalies. But rather than focusing on technical aspects as well, she has only focused...
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