Investment Mathematics

4.7. Which of the following are not a market anomaly? 1. New issues tend to underperform in the 3-5 year period after issue. II. 60% of the time, diversified equity-based mutual funds underperformed the market. III. At announcement of a takeover bid, stock price does not rise to bid price. IV. Stock returns tend to be higher in January. Finance and Investment sample questions: 19,21,23,24,41,43