1: Explain the following examples about anomalies:

- Friday effect - stocks are generally underperforming on Friday.

- size effect- large size companies provide a high rate of return.

- neglected stock provide a high return.

- January effect - stocks are generally outperforming in January.

2: Explain the following examples about reversal momentums:

A. Buying of shares who are trading at 52 week high.

B. Selling of shares who are trading at 52-week lows

C. Buying the outperformers and leaders and high price to earnings ratio shares.

D. Buying out the Darvas stocks.

3: Explain the following examples about a reversal:

A. Buying the stocks at support zones

B. Selling stocks at resistant zones

C. Buying shares in the bear market who those who are breaking moving averages on the upside

D. Selling of shares in the Bull market those who are breaking moving averages on the downside.

4: Give two more examples about anomalies, momentum, and reversal and explain them?

Answer rating: 100% (QA)

Answer Question 1 Friday effect Its long been a puzzle Standard economic theory predicts that when a company releases unexpected news about earnings its stock price should immediately reflect the new ... View the full answer