Title: A Study on the Theoretical Explanations of Security Market Anomalies
Abstract: Security market anomalies refer to the particular phenomenon in which the risk-adjusted returns to securities in mind exceed the expected values. Researchers in support of the EMH (Efficient Market Hypothesis) propose that the risk factors cause the security market anomalies, regarding them as the incidental deviations from the security price changes in nature. However, the advocators the Behavioral Finance Theory adopt somewhat psychological methods on investor behavior research on the basis of the relaxation of the EMH rationality hypothesis, and derive some weighty but conflicting explanations to those of the EMH. In this paper, the authors reflect and present in depth comments on the explanations of security market anomalies from both sides.
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
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