Answer-first summary for fast verification
Answer: Momentum, a time-series anomaly where short-term share price trends continue in the same direction over time.
The correct answer is **B. Momentum**, as it is a time-series anomaly where short-term share price trends persist in the same direction. - **A. The size effect** is incorrect because it is a cross-sectional anomaly, not a time-series anomaly. It describes the outperformance of small-cap equities over large-cap equities on a risk-adjusted basis. - **C. Initial Public Offerings (IPOs)** is incorrect because it is classified as an 'other' anomaly, not a time-series anomaly.
Author: LeetQuiz Editorial Team
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Which of the following market anomalies is best characterized as a time-series anomaly?
A
The size effect, which is a cross-sectional anomaly where small-cap equities tend to outperform large-cap equities on a risk-adjusted basis.
B
Momentum, a time-series anomaly where short-term share price trends continue in the same direction over time.
C
Initial Public Offerings (IPOs), categorized as an 'other' anomaly rather than a time-series anomaly.