You evaluated the role that the EMH and CAPM play in assumptions that are made by investors in the market

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Due Date: 11:59 p.m. EST, Sunday of Unit 2 Points: 100 Overview: During the first week’s assignment, you evaluated the role that the EMH and CAPM play in assumptions that are made by investors in the market. This week built upon those assumptions and introduced the concept of behavioral finance – a concept born due to the inability of modern finance to address uncertainty and tests of the concept of market efficiency. Instructions: Evaluate the major anomalies discussed such as the lagged reactions to earnings announcements, small-firm effect, the value advantage, along with both momentum and reversal. To complete this week’s assignment, write a 2-3 page essay that explains the potential effects of each of these. Include in your essay an explanation of the importance of establishing a field such as behavioral finance. Requirements:

• 2-3 pages in length (double-spaced). • Additional title and reference pages included. • Proper grammar and APA formatting must be followed. • See grading criteria on the following page.

Be sure to read the criteria by which your work will be evaluated before you write and again after you write.

FIN402: Behavioral Finance in Personal Investment

Unit 2 Assignment: Evaluating Major Anomalies

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Evaluation Rubric for Evaluating Major Anomalies Assignment

CRITERIA Needs Improvement Satisfactory Proficient

(0-20 Points) (21-26 Points) (27-30 Points) Clarity and Structure

Assignment questions are not addressed / minimally addressed, or incorrect; explanations are hard to follow.

Assignment questions are partially addressed; some areas may be off- topic.

Assignment questions are addressed clearly and thoroughly throughout.

Evidence of Critical Thinking

Lacking critical thinking; analysis contains obvious responses to questions; little thought evident.

Some critical thinking evident, but may not directly address the key concepts; analysis shows partial contextualizing of unit material.

Clear evidence of critical thinking; analysis addresses key concepts and exhibits originality and successful contextualizing of the unit material.

(0-13 Points) (14-17 Points) (18-20 Points) Details and Examples Used

None provided, or minimal details explored and/or examples used.

A few layers of detail and examples used, though some details may be missing or lacking.

Writing explores multiple layers of detail; provided excellent explanations using appropriate examples.

(0-6 Points) (7-8 Points) (9-10 Points) Structure and Flow

Flow is poor. Paragraphing is inappropriate. Transitions are minimal or absent. Redundancy is evident.

Flow is good. Paragraphing is mostly appropriate. Transitions are present, and redundancies are minimal.

Flow is excellent. Paragraphing is clear, and transitions are smooth and consistent. Inappropriate redundancies are absent.

Clear and Professional Writing and APA Format

Errors impede professional presentation; no/minimal APA guidelines followed.

Few errors contained that do not impede professional presentation.

Writing and format are clear, professional, APA compliant, and error free.