Exploring Persistent Anomalies in the Stock Market Financial Essay
McLean and Pontiff 2016,anomalies and find that the anomaly decays after anomalies are,disclosed. Hou et al. 2020, anomalies and find that many anomalies are not significant, especially those related to trade frictions. China is the second largest economy in the world. It also has the second largest in the world, including the results of a search for variants of the word "anomaly" in titles and abstracts in the economic literature - the American Economic Association. According to this database, its first use in finance was in a 1975 article by Gentry “Capital Market Line Theory, Insurance Company Portfolio Performance. Many researchers have shown that the financial market of the Kenyan economy is weakly inefficient in terms of calendar deviations. The inefficiency in the market can be explained by the volatility of stock returns. This study was conducted with the primary objective of determining the effect of calendar anomalies on stocks. Discoveries of anomalies in financial markets typically arise from empirical tests that rely on a common null hypothesis - namely, that security markets are informationally efficient and returns behave according to a pre-specified equilibrium model, for example the capital asset pricing model, CAPM. If the joint hypothesis is rejected, we cannot do that. Calendar anomalies are basically defined as an irregular pattern of stock returns based on a calendar year. This article attempts to establish the existence of calendar anomalies namely day-of-the-week effect, change-of-month effect and month-of-year effect in the Indian stock market. Daily data of Sensex and Nifty for the period of. The market efficiency hypothesis suggests that markets are rational and that their prices fully reflect all available information. Thanks to timely actions by investors, stock prices adjust quickly.