Which of the following is the most persistent example of a market anomaly?
A) Stock splits
B) The size effect
C) Dividend announcements
D) Technical patterns and charting

Question

Quizplus · Accepted Answer

The size effect, which suggests that smaller companies tend to outperform larger companies on a risk-adjusted basis, is considered a persistent market anomaly. This anomaly challenges the efficient market hypothesis by showing that market size can influence stock returns in a way that's not fully explained by traditional financial theories.

Which of the Following Is the Most Persistent Example of a Market