You evaluated the role that the EMH and CAPM play in assumptions that are made by investors in the market.
Copyright Post University 2021, All Rights Reserved.
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
Copyright Post University 2021, All Rights Reserved.
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.