--%>

Define Calendar Anomaly

Calendar Anomaly: Calendar anomalies can be defined as any irregularity or consistent pattern occurring at a regular interval or at a specific time in calendar year. Presence of these anomalies in a calendar year is the biggest threat to the concept of market efficiency as any one by observing these patterns can beat the market. Theoretically, anomalies are the result of shortfalls in the models applied for testing market efficiency rather than of inefficiency of market (Bowman, Buchanan, 1995). Calendar anomalies in the financial markets are well-documented phenomenon. Different studies have found that asset returns are dissimilar on days of the week, months of the year; turn of the month and before holidays. These empirical regularities are more pronounced in securities markets and thus have been subject to investigation in many studies. The Empirical examination of calendar anomalies in foreign exchange markets, on other hand, has been limited. However, the extant studies point out to the existence of a day-of-the-week effect in the spot rates of major currencies and also traded futures and options on such rates.

   Related Questions in Microeconomics

  • Q : Earn high incomes in purely competitive

    Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments.

    Q : Change in total revenue by selling

    Marginal revenue, which is: (w) the change in total revenue from selling an additional unit of output. (x) the change in total revenue from hiring an additional unit of labor. (y) computed as TR/Q. (z) specified by change in Q / change in TR.

  • Q : Economists view on Psychic Income Can

    Can someone please help me in finding out the accurate answer from the following question. The Economists view on the psychic income as the: (1) Explicit cost of the production. (2) Implicit cost of production. (3) Implicit revenue gathered by the firm's owner. (4) Ac

  • Q : Kinked Demand by increasing price In

    In this kinked demand curve model as in demonstrated, when this firm operates at point a and increases its price from P2 to P3 and its rival firms respond by increasing their prices, in that case this firm will move from point a

  • Q : Present Value of an Annual Income The

    The present value of an annual income stream which goes on forever equals the annual income as: (w) times infinity. (x) divided by the wage rate. (y) multiplied by the interest rate. (z) divided by the interest rate.

    Q : Shutdown level of output for a purely

    For a purely competitive firm the shutdown level of output arises where is: (w) total revenue barely covers total fixed costs. (x) market price just equals the minimum of its AVC curve. (y) total revenue equals total cost as (PQ = TFC + TVC). (z) pric

  • Q : Question on supply-and-demand diagrams

    Normal 0 false false

  • Q : Labor Union Goals-Minimum employment

    Can someone please help me in finding out the accurate answer from the following question. When a union achieved the maximum possible hourly wage: (i) All of the members would be pleased. (ii) Employment would as well be maximized. (iii) Employment would be at minimum

  • Q : Implication of the law of demand The

    The law of demand implies a relationship which: (i) Apply merely in the market economy. (ii) Needs government enforcement to work. (iii) Is negative among price and quantity demanded. (iv) Applies merely whenever scarcity is cured.

  • Q : Emphasis on equality of opportunity An

    An emphasis on equality of opportunity, although not essentially equality of result, is a center-piece of a system of distribution termed as: (1) meritocracy. (2) laissez faire capitalism. (3) feudalism. (4) socialism. (5) syndicalism