SEMINAR 5–MN-3002 Financial Market Efficiency
1. Behavioural finance posits that investors possess behavioural biases. Discuss the importance of behavioural biases, then list, explain and provide examples of four behavioural biases. [25 marks]
2. With regard to market efficiency, what is meant by the term “anomaly”? Give four examples of market anomalies and explain why each is considered to be an anomaly. [25 marks]
3. Discuss the various forms of market efficiency. Include in your discussion the information sets involved in each form and the relationships across information sets and across forms of market efficiency. Also discuss the implications for the various forms of market efficiency for the various types of securities' analysts. [25 marks]
4. A test of market efficiency could be based on the analysis of the performance of equity investing. What is the evidence on the performance of mutual fund managers? Which model would you use to measure performance? [25 marks]