Question: Concisely discuss the Day-of-the-week effect or the Monday effect on stock returns. This anomaly appears prominent on Mondays that fall in the second half of
Concisely discuss the Day-of-the-week effect or the Monday effect on stock returns. This anomaly appears prominent on Mondays that fall in the second half of the month of January. Demonstrate through a regression model how you would test for this anomaly on stock returns and explain the associated inferences. Does this anomaly challenge the market efficiency hypothesis? Provide your critical assessment.
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