Reference no: EM132767161

Problem 1: If the market is efficient in the semi-strong form but inefficient in the strong form

Option 1: charting and timing techniques can be used to obtain an advantage

Option 2: inside traders can obtain an advantage

Option 3: sophisticated investors can enjoy abnormal returns using publicly available information

Option 4: the market reflects some but not all privately available information

Problem 2: Which one of the following is an objective of a normative accounting theory?

Option 1: Predict the effect of cosmetic accounting policy changes on share prices

Option 2: Prescribe accounting measurement methods that provid useful information to investors

Option 3: Explain differences in accounting policies between companies

Option 4: Describe how investors interpret financial statements