Question: Which statements about anomalies are correct? Multiple select question. The correct method of risk adjustment in assessing returns is usually open to debate. The finding
Which statements about anomalies are correct?
Multiple select question.
The correct method of risk adjustment in assessing returns is usually open to debate.
The finding of an anomaly may simply reflect incorrect adjustment for risk.
Usually the risk adjustment technique to find an anomaly is based on lessquestionable assumptions than is the EMH.
Tests of riskadjusted returns are joint tests of the efficient market hypothesis and the risk adjustment procedure.
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