1. We talked about several anomalies in class (momentum, January, weekend, P/E, B/M, earnings surprise, small firm, neglected firm). Use the internet to search for another anomaly that conflicts with EMH. Briefly, explain what the anomaly is and how you would receive abnormal returns. Have any explanations been found for why the anomaly exists or does it weaken the efficient market hypothesis?
2. The news has recently suggested that stock prices are much higher than they should be given future growth estimates. Do you think the news is correct and many stocks are currently overpriced or are they accurately priced? Provide at least two reasons to support your answer. How does your answer relate to the efficient market hypothesis?