A) technical analysis. B) fundamental analysis. C) regression analysis. D) insider analysis. E) psychoanalysis. A) technical analysis. B) fundamental analysis. C) regression analysis. D) insider analysis. E) psychoanalysis.

Exam 11: The Efficient Market Hypothesis

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On November 22, 2012, the stock price of WalMart was $69.50 and the retailer stock index was 600.30.On November 25, 2012, the stock price of WalMart was $70.25 and the retailer stock index was 605.20.Consider the ratio of WalMart to the retailer index on November 22 and November 25.WalMart is _ the retail industry, and technical analysts who follow relative strength would advise _ the stock.

(Multiple Choice)

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Question 21

Chartists practice

(Multiple Choice)

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Question 22

Why might the degree of market efficiency differ across various markets State three reasons why this might occur, and explain each reason briefly.

(Essay)

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Question 23

If you believe in the reversal effect, you should

(Multiple Choice)

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Question 24

_________ below which it is difficult for the market to fall.

(Multiple Choice)

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Question 25

If stock prices follow a random walk

(Multiple Choice)

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Question 26

Sehun (1986) finds that the practice of monitoring insider trade disclosures, and trading on that information, would be

(Multiple Choice)

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Question 27

The debate over whether markets are efficient will probably never be resolved because of

(Multiple Choice)

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Question 28

Basu (1977, 1983) found that firms with high P/E ratios

(Multiple Choice)

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Question 29

QQAG has a beta of 1.7.The annualized market return yesterday was 13%, and the risk-free rate is currently 3%.You observe that QQAG had an annualized return yesterday of 20%.Assuming that markets are efficient, this suggests that

(Multiple Choice)

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Question 30

In an efficient market,

(Multiple Choice)

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Question 31

When Maurice Kendall examined the patterns of stock returns in 1953, he concluded that the stock market was __.Now, these random price movements are believed to be _.

(Multiple Choice)

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Question 32

Basu (1977, 1983) found that firms with low P/E ratios

(Multiple Choice)

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Question 33

Jaffe (1974) found that stock prices _________ after insiders intensively sold shares.

(Multiple Choice)

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Question 34

Banz (1981) found that, on average, the risk-adjusted returns of small firms

(Multiple Choice)

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Question 35

The main difference between the three forms of market efficiency is that

(Multiple Choice)

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Question 36

In an efficient market the correlation coefficient between stock returns for two nonoverlapping time periods should be

(Multiple Choice)

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Question 37

The likelihood of an investment newsletter's successfully predicting the direction of the market for three consecutive years by chance should be

(Multiple Choice)

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Question 38

Researchers have found that most of the small firm effect occurs

(Multiple Choice)

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Question 39

Banz (1981) found that, on average, the risk-adjusted returns of large firms

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Question 40

Showing 21 - 40 of 71

Exam 11: The Efficient Market Hypothesis

Chartists practice

Why might the degree of market efficiency differ across various markets State three reasons why this might occur, and explain each reason briefly.

If you believe in the reversal effect, you should

_________ below which it is difficult for the market to fall.

If stock prices follow a random walk

Sehun (1986) finds that the practice of monitoring insider trade disclosures, and trading on that information, would be

The debate over whether markets are efficient will probably never be resolved because of

Basu (1977, 1983) found that firms with high P/E ratios

QQAG has a beta of 1.7.The annualized market return yesterday was 13%, and the risk-free rate is currently 3%.You observe that QQAG had an annualized return yesterday of 20%.Assuming that markets are efficient, this suggests that

In an efficient market,

When Maurice Kendall examined the patterns of stock returns in 1953, he concluded that the stock market was __________.Now, these random price movements are believed to be _________.

Basu (1977, 1983) found that firms with low P/E ratios

Jaffe (1974) found that stock prices _________ after insiders intensively sold shares.

Banz (1981) found that, on average, the risk-adjusted returns of small firms

The main difference between the three forms of market efficiency is that

In an efficient market the correlation coefficient between stock returns for two nonoverlapping time periods should be

The likelihood of an investment newsletter's successfully predicting the direction of the market for three consecutive years by chance should be

Researchers have found that most of the small firm effect occurs

Banz (1981) found that, on average, the risk-adjusted returns of large firms

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

When Maurice Kendall examined the patterns of stock returns in 1953, he concluded that the stock market was __.Now, these random price movements are believed to be _.