Question 1

To be guilty of insider trading, one must be an officer of the company involved.

Accepted Answer

A) True 
 B)False

Question 2

A study indicated that what type of stock had the best performance four years after announcement of a stock repurchase?

Accepted Answer

A) Growth stocks 
B) Convertible preferred stocks 
C) Low-yield stocks 
D) Value-oriented stocks 
A) Growth stocks 
B) Convertible preferred stocks 
C) Low-yield stocks 
D) Value-oriented stocks

Question 3

The major problem associated with trying to profit from mergers and acquisitions is

Accepted Answer

A) that contradictory information is available. 
B) pinpointing reasons for stock price changes. 
C) the threat of cancellation. 
D) None of the above 
A) that contradictory information is available. 
B) pinpointing reasons for stock price changes. 
C) the threat of cancellation. 
D) None of the above

Question 4

Firms with low P/E ratios that are often neglected by major investors seem to provide:

Accepted Answer

A) an inferior risk-adjusted return. 
B) a superior risk-adjusted return. 
C) a superior return, not adjusted for risk, though. 
D) No return 
A) an inferior risk-adjusted return. 
B) a superior risk-adjusted return. 
C) a superior return, not adjusted for risk, though. 
D) No return

Question 5

Results of research studies make it easy to identify characteristics of potential acquisition candidates.

Accepted Answer

A) True 
 B)False

Question 6

The primary reason for the upward market movement in the value of the acquisition candidate is the low premium that is offered over current market value in a merger or acquisition.

Accepted Answer

A) True 
 B)False

Question 7

One reason a firm may repurchase its own shares is:

Accepted Answer

A) that management views the firm's future prospects to be bright. 
B) to go public. 
C) to qualify for an exchange listing. 
D) to adhere to SEC requirements on number of shares outstanding. 
A) that management views the firm's future prospects to be bright. 
B) to go public. 
C) to qualify for an exchange listing. 
D) to adhere to SEC requirements on number of shares outstanding.

Question 8

Most companies attempt to avoid the effects of synergy in putting a merger or acquisition together.

Accepted Answer

A) True 
 B)False

Question 9

Banz's research on the small firm effect was criticized because

Accepted Answer

A) the stocks were too small. 
B) it was highly influenced by a depression and a major war. 
C) the stocks were too large. 
D) it was highly influenced by inflation and a devaluation of the dollar. 
A) the stocks were too small. 
B) it was highly influenced by a depression and a major war. 
C) the stocks were too large. 
D) it was highly influenced by inflation and a devaluation of the dollar.

Question 10

An investment banker overprices an issue in order to satisfy the corporate issuer.

Accepted Answer

A) True 
 B)False

Question 11

The January upward stock movement effect is often linked to:

Accepted Answer

A) surprise earnings. 
B) tax considerations. 
C) early in the year enthusiasm. 
D) the neglect effect. 
A) surprise earnings. 
B) tax considerations. 
C) early in the year enthusiasm. 
D) the neglect effect.

Question 12

After-market performance refers to the price experiences of new issues immediately after going public.

Accepted Answer

A) True 
 B)False

Question 13

Specialists and mutual fund managers tend to enjoy superior market performance on a risk-adjusted basis.

Accepted Answer

A) True 
 B)False

To be guilty of insider trading, one must be an officer of the company involved.

A study indicated that what type of stock had the best performance four years after announcement of a stock repurchase?

The major problem associated with trying to profit from mergers and acquisitions is

Firms with low P/E ratios that are often neglected by major investors seem to provide:

Results of research studies make it easy to identify characteristics of potential acquisition candidates.

The primary reason for the upward market movement in the value of the acquisition candidate is the low premium that is offered over current market value in a merger or acquisition.

One reason a firm may repurchase its own shares is:

Most companies attempt to avoid the effects of synergy in putting a merger or acquisition together.

Banz's research on the small firm effect was criticized because

An investment banker overprices an issue in order to satisfy the corporate issuer.

The January upward stock movement effect is often linked to:

After-market performance refers to the price experiences of new issues immediately after going public.

Specialists and mutual fund managers tend to enjoy superior market performance on a risk-adjusted basis.

The Investment Setting

Security Markets

Participating in the Market

Investment Companies: Mutual Funds, Exchange-Traded Funds, Closed-End Funds, and Unit Investment Trusts

Economic Activity

Industry Analysis

Valuation of the Individual Firm

Financial Statement Analysis

Behavioral Finance and Technical Analysis

Bond and Fixed-Income Fundamentals

Principles of Bond Valuation and Investment

Convertible Securities and Warrants

Put and Call Options

Commodities and Financial Futures

Stock Index Futures and Options

A Basic Look at Portfolio Management and Capital Market Theory

Duration and Bond Portfolio Management

International Securities Markets

Investments in Real Assets

Alternative Investments: Private Equity and Hedge Funds

Measuring Risks and Returns of Portfolio Managers

A Comprehensive Analysis for Real Estate Investment Decisions

The Makeup of Institutional Investors

Filters

Exam 9: Efficient Markets and Anomalies

To be guilty of insider trading, one must be an officer of the company involved.

A study indicated that what type of stock had the best performance four years after announcement of a stock repurchase?

The major problem associated with trying to profit from mergers and acquisitions is

Firms with low P/E ratios that are often neglected by major investors seem to provide:

Results of research studies make it easy to identify characteristics of potential acquisition candidates.

The primary reason for the upward market movement in the value of the acquisition candidate is the low premium that is offered over current market value in a merger or acquisition.

One reason a firm may repurchase its own shares is:

Most companies attempt to avoid the effects of synergy in putting a merger or acquisition together.

Banz's research on the small firm effect was criticized because

An investment banker overprices an issue in order to satisfy the corporate issuer.

The January upward stock movement effect is often linked to:

After-market performance refers to the price experiences of new issues immediately after going public.

Specialists and mutual fund managers tend to enjoy superior market performance on a risk-adjusted basis.

The Investment Setting

Security Markets

Participating in the Market

Investment Companies: Mutual Funds, Exchange-Traded Funds, Closed-End Funds, and Unit Investment Trusts

Economic Activity

Industry Analysis

Valuation of the Individual Firm

Financial Statement Analysis

Behavioral Finance and Technical Analysis

Bond and Fixed-Income Fundamentals

Principles of Bond Valuation and Investment

Convertible Securities and Warrants

Put and Call Options

Commodities and Financial Futures

Stock Index Futures and Options

A Basic Look at Portfolio Management and Capital Market Theory

Duration and Bond Portfolio Management

International Securities Markets

Investments in Real Assets

Alternative Investments: Private Equity and Hedge Funds

Measuring Risks and Returns of Portfolio Managers

A Comprehensive Analysis for Real Estate Investment Decisions

The Makeup of Institutional Investors

Filters