Statements regarding the efficient market hypothesis

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Reference no: EM132053004

1. Given the following information, calculate the equity dividend rate for this investment. First-year NOI: $18,750, Before-tax cash flow: $11,440, Acquisition price: $520,000, Equity Investment: 20%.

A. 2.2% B. 3.6% C. 11.0% D. 18.02%

2. Which of the following statements regarding the efficient market hypothesis (EMH) is incorrect?

A) An efficient market is a perfect market where you cannot make large profits.

B) If the market is efficient in its strong form, it reflects all available, public and private, information.

C) The semi-strong form efficiency means that market prices reflect all publicly available information.

D) A market that only reflects the past price and volume information is a weak-form efficient market.

Reference no: EM132053004

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