Selecting one choice for each question as the right answer….
Question Selecting one choice for each question as the right answer…. Selecting one choice for each question as the right answer.Question 1Market Efficiency is about…a. The relationship between price and value b. Price predictability c. The efficiency of capital structure and dividend policy decisions d. Options 1 and 2 are correct e. Options 1, 2 and 3 are correct Question 2If ‘Market price = Intrinsec value’, then… a. Prices are unpredictable b. The market price is bound to be wrong c. The intrinsec value is bound to be wrong d. Both market price and intrinsec value are bound to be wrong e. Market price and intrinsec value are always and for every asset equal to each other Question 3Market efficiency in financial markets should be viewed much like… a. Operational efficiency is viewed in manufacturing plants b. Competition is viewed in economics c. An extreme hypothesis to which financial markets should ideally tend to d. Options 1 and 2 are correct e. Options 2 and 3 are correct Question 4If markets are efficient, then…a. New information arrives unpredictably and prices become unpredictableb. It is not possible to get lucky in the short term (say, a 15% one-day return)c. It is not possible to earn lower returns than the market in the long term d. It is not possible to get unlucky in the short term (say, a ?15% one-day return) e. It is not possible to earn higher returns than the market in the long term Question 5It is clearly case that… a. All academics believe that markets are efficient b. All academics believe that markets are inefficient c. All practitioners believe that markets are efficient d. All practitioners believe that markets are inefficient e. There are both academics and practitioners on both sides of the issue Question 6If all the insights that can be extracted from a time series of stock prices are actually reflected in current prices, then the market necessarily is … a. Weak-form efficient b. Semistrong-form efficient c. Strong-form efficient d. Options 1 and 2 are correcte. Options 2 and 3 are correct Question 7If all the insights that can be extracted from publicly-available information are actually reflected in current prices, then the market necessarily is… a. Weak-form efficient b. Semistrong-form efficient c. Strong-form efficient d. Options 1 and 2 are correct e. Options 2 and 3 are correct 8.Question 8Properly interpreted, “beating the market” should be understood as… a. Beating the market in the long-term in terms of risk-adjusted returns b. Beating the market in the short-term in terms of risk-adjusted returns c. Beating the market in the long-term in terms of returns d. Beating the market in the short-term in terms of returns e. Beating the S&P 500 in terms of returns Accounting Business Financial Accounting Share QuestionEmailCopy link Comments (0)
