1. What is an anomaly in finance?
2. Give three examples of anomalies that academic research has uncovered in the past two decades (make sure and explain these anomalies in detail including references).
3. If markets are efficient what would you expect to happen to these anomalies after they were discovered?
4. What financial frictions might enable these anomalies to persist (make sure and cite frictions that apply to the anomalies in part 'b')?