A) Cause stocks with similar risks to have similar expected returns B) Always tend to undervalue stocks C) Tend to be either overly optimistic or overly pessimistic D) Are all arbitrage traders E) Must include all investors if the market is to be efficient A) Cause stocks with similar risks to have similar expected returns B) Always tend to undervalue stocks C) Tend to be either overly optimistic or overly pessimistic D) Are all arbitrage traders E) Must include all investors if the market is to be efficient

Exam 8: Stock Price Behaviour and Market Efficiency

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You invest $10,000 in the market at the beginning of the year, and by the end of the year your account is worth $15,000. During the year the market return was 10%. Does this mean that the market is inefficient?

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Question 101

The rules established by the NYSE that control trading when the DJIA declines by more than a specified amount on any trading day are referred to as:

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Question 102

Describe an example of a market which is weak-form but not strong-form efficient.

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Question 103

During the period of August 25, 1987 to October 20, 1987, the stock market declined in value by approximately __________ percent.

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Question 104

Rational investors

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Question 105

Last week, Janus Plastics announced that they had developed a new plastic container that was stronger and more durable and also easier to recycle. In response to this announcement, Janus' stock price rose from $23 a share to a high of $36 a share and then settled back to $27 a share. This is an example of a(n):

(Multiple Choice)

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Question 106

The term "independent deviations from rationality" implies that irrational investors

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Question 107

If the market is form efficient, it is also form efficient.

(Multiple Choice)

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Question 108

Martha Stewart in a famous US court case served jail time because she was found guilty of:

(Multiple Choice)

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Question 109

Approximately how long did it take the stock market to return to its highs from August 1987 once it crashed in October?

(Multiple Choice)

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Question 110

Which one of the following statements is correct?

(Multiple Choice)

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Question 111

Moving money in and out of the market based on your market expectations is called and tends to lead to returns that are than the overall market return, assuming that the market is efficient.

(Multiple Choice)

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Question 112

You are reading the most recent issue of the Wall Street Reporter and Review and learn of a mutual fund manager who has outperformed the market over the past five years by at least 6 percent per year. Which of the following would make it difficult to argue this shows the stock market is not efficient? I. The dumb luck problem. II. The data snooping problem. III. The risk-adjustment problem. IV. The relevant information problem.

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Question 113

Showing 101 - 113 of 113

You invest $10,000 in the market at the beginning of the year, and by the end of the year your account is worth $15,000. During the year the market return was 10%. Does this mean that the market is inefficient?

The rules established by the NYSE that control trading when the DJIA declines by more than a specified amount on any trading day are referred to as:

Describe an example of a market which is weak-form but not strong-form efficient.

During the period of August 25, 1987 to October 20, 1987, the stock market declined in value by approximately __________ percent.

Rational investors

The term "independent deviations from rationality" implies that irrational investors

If the market is form efficient, it is also form efficient.

Martha Stewart in a famous US court case served jail time because she was found guilty of:

Approximately how long did it take the stock market to return to its highs from August 1987 once it crashed in October?

Which one of the following statements is correct?

Moving money in and out of the market based on your market expectations is called and tends to lead to returns that are than the overall market return, assuming that the market is efficient.

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

Mutual Funds

The Stock Market

Common Stock Valuation

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters

Exam 8: Stock Price Behaviour and Market Efficiency

You invest $10,000 in the market at the beginning of the year, and by the end of the year your account is worth $15,000. During the year the market return was 10%. Does this mean that the market is inefficient?

The rules established by the NYSE that control trading when the DJIA declines by more than a specified amount on any trading day are referred to as:

Describe an example of a market which is weak-form but not strong-form efficient.

During the period of August 25, 1987 to October 20, 1987, the stock market declined in value by approximately __________ percent.

Rational investors

The term "independent deviations from rationality" implies that irrational investors

If the market is __________ form efficient, it is also __________ form efficient.

Martha Stewart in a famous US court case served jail time because she was found guilty of:

Approximately how long did it take the stock market to return to its highs from August 1987 once it crashed in October?

Which one of the following statements is correct?

Moving money in and out of the market based on your market expectations is called __________ and tends to lead to returns that are __________ than the overall market return, assuming that the market is efficient.

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

Mutual Funds

The Stock Market

Common Stock Valuation

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters

If the market is form efficient, it is also form efficient.

Moving money in and out of the market based on your market expectations is called and tends to lead to returns that are than the overall market return, assuming that the market is efficient.