Reading 55: Market Efficiency and Anomalies - LOS d ～ Q1

答案和详解如下：

1.Which of the following statements concerning the persistence of pricing anomalies is least likely to be correct?

A)   When there is no theoretical explanation, an anomaly is difficult to exploit.

B)   A lack of liquidity may cause transactions costs to exceed the profit potential of the anomaly.

C)   Trading restrictions may preclude the establishment of the positions required to exploit an anomaly.

D)   The capital required to exploit an anomaly is often not available.

The correct answer was D)

If an anomaly exists and is exploitable, the lack of capital is not a likely explanation for its persistence. The other statements all reflect valid rationales for why mispricing can persist.

2.Which of the following statements concerning the persistence of pricing anomalies is least likely to be correct?

A)   Arbitrageurs may exploit opportunities down to the point where the remaining mispricing is approximately equal to transactions costs.

B)   If the shares of an IPO cannot be shorted, mispricing may be difficult to exploit.

C)   Small profit opportunities are difficult to exploit in the absence of derivative securities.

D)   The conditions that caused the mispricing may change, making it difficult to exploit.

The correct answer was C)

The size of the profit opportunity is likely to be more important than the absence of derivative securities. Thus, this statement is the least likely to be correct from those given for the persistence of mispricing.

3.The reasons why a mispricing can persist all relate to the idea that:

A)   taxes and other transactions costs make exploiting the anomaly prohibitive.

B)   the size of the available profit is too small.

C)   suitable positions cannot be established.

D)   an anomaly cannot be quickly exploited by traders or arbitrageurs.

The correct answer was D)

The fundamental reason that mispricing and anomalies can persist is that traders and arbitrageurs are not able to exploit the situation. The other items are possible reasons why traders and arbitrageurs are not able to act.