Both true and evidence of market efficiency

Assignment Help Financial Management

Reference no: EM131552427

1- proponents of the Efficient Markets Hypothesis tend to recommend:

a-Technical analysis

b-Earning analysis

c-Passive investing

d-Mutual funds

e-Lucky strike

2- Investors should pursue international investments for the following reasons:

a-Diversification benefits

b-Higher returns due to higher risk

c-Tax savings

d-All of the above

e-Only A and B

3- Top down investment analysis always includes:

a-Company analysis

b-Technical analysis

c-Industry analysis

d-Macroeconomics analysis

e-All of the above

4- which one of the following option strategies is the most risky?

a-Buying a put option

b-Writing a call option

c-Buying a call option

d-Buying a put and call on the same stock

e-Cannot tell without more info

5- computation of a risk-adjusted required return is best accomplished using

a-The dividend discount model

b-The price-earnings ratio

c-The market model beta

d-Momentum

e-Astrology

6- which of the following are both TRUE and evidence of market efficiency?

a-Stock prices seem to anticipate merger outcomes

b-Earnings announcement have no lasting impact on stock prices

c-Stocks exhibit significant price momentum

d-Mutual fund managers tend to outperform market averages

e-Small stocks earn higher returns, on average

Reference no: EM131552427

Questions Cloud

Calculate after-tax cost of debt : Calculate WTI’s after-tax cost of debt. Explain why firms that increase their leverage (like WTI) rely more heavily on effective risk management.

What role do you tend to play in groups : What role do you tend to play in groups? Is it a role you choose because you enjoy it or because you are just naturally good at it?

How much will apex pay for the fire loss : Apex Fire enters into a surplus share reinsurance treaty with Geneva Re for fire insurance coverage. How much will Apex pay for the fire loss?

Fire risk associated with this line of business : XTC retains 30 percent of the fire risk associated with this line of business,

Both true and evidence of market efficiency : which of the following are both TRUE and evidence of market efficiency? which one of the following option strategies is the most risky?

Use the greens theorem to evaluate : Use the Green’s theorem to evaluate . , is the triangle from to to to .

What is the price of the company stock : Suppose the company has a beta of 1.2, the risk-free rate is 2%, and the market risk premium is 6%. What is the price of the company's stock?

Calculate the firm earnings before interest and taxes : Calculate the firm's earnings before interest and taxes (EBIT) for sales of 9,000 units. Calculate the firms' EBIT for sales of 7,000 and 11000 units.

Describe a simpler way to provide the same functionality : Using the kill command to kill processes is more complicated than it needs to be.

User Account

All Pages