Earn excess profits based on the knowledge

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Reference no: EM132000892

1. Company insiders cannot earn excess profits based on the knowledge they have related to their employer if the financial markets are:

A) weak form efficient.

B) strong form efficient.

C) semistrong form efficient.

D) efficient at any level.

E) aware that the trader is an insider.

2. The outstanding bonds of Winter Tires Inc. provide a real rate of return of 5.6 percent. If the current rate of inflation is 4.68 percent, what is the actual nominal rate of return on these bonds using the approximation method?

A. 8.58 percent

B. 9.33 percent

C. 9.71 percent

D. 9.76 percent

E. 10.28 percent

Please explain answer

Reference no: EM132000892

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