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The Concept of Market Efficiency
Which of the following will most likely impede market efficiency?
Efficient Market Hypothesis
A researcher claims that a market he is studying is semi-strong form efficient. Based on his claim,
Efficient Market Hypothesis
Alvin believes that the Hong Kong market is only weak-form efficient. How should his investment philosophy in the Hong Kong market look like based on his belief?
Market Anomalies
Suling noticed that she could earn abnormal profits in a market by shorting stocks that have risen over 100% in less than 2 months. This strategy is most likely an example of:
Market Anomalies
Professor Smirt has convincing evidence that abnormal profit can be earned by buying small-cap stocks in a market. What is least likely the reason that prevents him from trying to profit from his findings?
Behavioural Finance
When Ishak was asked why he sold off his shares when the almost all the past paper gains have been wiped off, he explained: “I don’t like to lose money, so I just exit with whatever little gains that have been made.”
Ishak’s behaviour is most likely due to:
Behavioural Finance
Mohamed often studies the analysis of a group of investors that he follows, and often trades based on their analysis. This is most likely an example of:
Many years ago, I was exactly where you are today—a CFA Level I candidate juggling a demanding full-time career with the daunting CFA curriculum. Coming from a Computer Engineering background, finance was entirely new territory for me. And yes, it was tough!
I struggled with dense textbooks, late-night cramming, and the frustration of concepts that seemed impossible after a long workday. But after passing Level I (barely), I realized something had to change.
Using the Pareto Principle (80/20 rule), I distilled the vast CFA syllabus into essential, easy-to-understand nuggets. I leaned into visual summaries and bite-sized learning sessions that worked around my busy schedule. This smarter approach helped me clear Levels II and III on my first attempts with significantly less stress.
I founded PrepNuggets to share the streamlined strategies and innovative learning methods that transformed my CFA journey. Our mission is simple: leverage technology to make CFA prep more effective, accessible, and enjoyable.
Join the PrepNuggets community today—sign up for your free account, and let our thoughtfully crafted materials propel you toward CFA success without unnecessary overwhelm.
Here’s to your CFA journey!
Keith Tan, CFA
Founder & Chief Instructor, PrepNuggets
Keith is the founder and chief instructor of PrepNuggets. He has a wide range of interests in all things related to tech, from web development to e-learning, gadgets to apps. Keith loves exploring different cultures and the untouched gems around the world. He currently lives in Singapore but frequently travels to share his knowledge and expertise with others.
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