QUESTION 1

1. What is incorrect about anomaly?

   		Neglected firm effect is related to semi efficient market hypothesis
   		Small firm effect is that small firms have relatively superior risk adjusted returns to large firms
   		January effect can be explained by weak form efficient market hypothesis
   		a financial anomaly refers to results which cannot be explained by financial theories especially efficient market hypothesis

2. Which of the following is wrong about the strong form of the Efficient Market Hypothesis?

		The strong form of the Efficient Market Hypothesis states that security prices fully reflect all public and private information
		Inside information is information not available to the general public
		Strong legal enforcement can make a market perfectly efficient as the strong form of the Efficient Market Hypothesis states.
		This means even corporate insiders cannot make abnormal profits by using inside information