Exam 13: Efficient Capital Markets and Behavioral Challenges
Exam 1: Introduction to Corporate Finance56 Questions
Exam 2: Financial Statements and Cash Flow62 Questions
Exam 3: Financial Statements Analysis and Financial Models77 Questions
Exam 4: Discounted Cash Flow Valuation100 Questions
Exam 5: Interest Rates and Bond Valuation85 Questions
Exam 6: Stock Valuation90 Questions
Exam 7: Net Present Value and Other Investment Rules83 Questions
Exam 8: Making Capital Investment Decisions87 Questions
Exam 9: Risk Analysis, Real Options, and Capital Budgeting85 Questions
Exam 10: Risk and Return Lessons From Market History84 Questions
Exam 11: Return and Risk: the Capital Asset Pricing Model Capm78 Questions
Exam 12: Risk, Cost of Capital, and Valuation86 Questions
Exam 13: Efficient Capital Markets and Behavioral Challenges48 Questions
Exam 14: Capital Structure: Basic Concepts85 Questions
Exam 15: Capital Structure: Limits to the Use of Debt56 Questions
Exam 16: Dividends and Other Payouts85 Questions
Exam 17: Options and Corporate Finance85 Questions
Exam 18: Short-Term Finance and Planning85 Questions
Exam 19: Raising Capital71 Questions
Exam 20: International Corporate Finance85 Questions
Exam 21: Mergers and Acquisitions Web Only31 Questions
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Stock prices fluctuate daily.In relation to the efficient market hypothesis,these fluctuations are:
Free
(Multiple Choice)
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Correct Answer:
C
The efficient market hypothesis supports which one of these statements?
Free
(Multiple Choice)
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Correct Answer:
D
If the market is fully efficient,then an announcement by a firm of a new product with a high net present value will cause the market price of that firm's stock to:
Free
(Multiple Choice)
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Correct Answer:
D
Which one of these is an indicator that a market is efficient?
(Multiple Choice)
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The efficient market hypothesis says that on average managers will:
(Multiple Choice)
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Explain why in an efficient market investments have an expected net present value (NPV)of zero.
(Essay)
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Which of these help prevent arbitrage from totally correcting market mispricings?
I.Trading costs
II.Market domination by rational professionals
III.Number of amateur investors
IV.Near-term risk
(Multiple Choice)
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Which one of these can be used as an argument that independent deviations from rationality are not generally random?
(Multiple Choice)
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The U.S.Securities and Exchange Commission periodically charges individuals for insider trading and claims those individuals have made unfair profits.Based on this fact,you would tend to argue that the financial markets are at best _____ form efficient.
(Multiple Choice)
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The hypothesis that market prices reflect all available information of every kind is called _____ form efficiency.
(Multiple Choice)
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Which of these are reasons why people do not accept the efficient market hypothesis?
I.Optical illusions
II.Normal profits
III.Earnings surprises
IV.Market bubbles
(Multiple Choice)
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Even though no final conclusion is currently warranted,a number of research papers,including those of Fama and French,have argued that:
(Multiple Choice)
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Why do you think it is difficult for researchers to agree on principles related to behavioral finance?
(Essay)
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If you live in a remote area with limited access to the news but do a lot of historical research on firms,you would prefer that the financial markets be ____ form efficient so you can have an advantage in the marketplace.
(Multiple Choice)
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Sam,an avid day trader,has noticed that a particular stock has increased in value in each of the last three trading days.Given this trend,he believes the stock price will increase over the next two trading days.This is an example of:
(Multiple Choice)
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