Exam 11: The Efficient Market Hypothesis

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Which of the following are used by fundamental analysts to determine proper stock prices? I.trendlines II.earnings III.dividend prospects IV.expectations of future interest rates V.resistance levels

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According to proponents of the efficient market hypothesis,the best strategy for a small investor with a portfolio worth $40,000 is probably to

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Your professor finds a stock-trading rule that generates excess risk-adjusted returns.Instead of publishing the results,she keeps the trading rule to herself.This is most closely associated with ________.

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Music Doctors has a beta of 2.25.The annualized market return yesterday was 12%,and the risk-free rate is currently 4%.You observe that Music Doctors had an annualized return yesterday of 15%.Assuming that markets are efficient,this suggests that

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In an efficient market,__________.

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

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A finding that _________ would provide evidence against the semistrong form of the efficient market theory.

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Researchers have found that most of the small firm effect occurs

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When Maurice Kendall first examined stock price patterns in 1953,he found that

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