Q- MOCK

CFA Level I
#1

Most accurate characterisation of the nature of abnormal returns relating to an anomaly and a source of unrealibility of an anomaly respecitvely are: -----------------------Nature of Abnormal return----------source of unreliaability of an anomoly ---------------------------Persistent----------------------------------------Behavioural Bias ---------------------------Persistent-----------------------------------------Suvivorship Bias --------------------------Momentary-------------------------------------------Behavioural Bias --------------------------Momentary-------------------------------------------survivorship Bias

#2

Can someone please explain this?

#3

I think its C

#4

an anomaly is characterized by persistent abnormal return, which often is the result of survivorship bias… just the definition.

#5

Thanks… was trying to find the definition… p.s. strangedays that’s what I put as the answer

#6

and there are lots of anomalous returns resulting from behavior, I’d say is A

#7

If the abnormal returns are persistent, doesn’t that make the returns normal?

#8

just because you have the monday or the january anomaly each monday or each january is not making it normal return

#9

ditto kant

#10

So does anyone know the answer?

#11

i also put C initially but the answer is B - from SS 13-15-d ‘The persistent realization of abnormal returns is referred to as an anomaly and survivorship bias is a source of unreliability of an anomaly’

#12

i thought we went over this question and the answer is A… what is the final answer? Suvivorship Bias or behavioural bias…

#13

i got it from CFAI feedback…

#14

OT do they give you an answer and explanation to the q on the mock? (there are solutions to sample tests)