Exam 4: Efficient Markets, Investment Value, and Market Price

A level of market efficiency in which all relevant information both public and private is fully and immediately reflected in security prices is called a ______ efficient market.

Empirical research has most often shown that securities markets fall into the ____ category of market efficiency.

A market for securities in which brokers and dealers compete fairly so that the cost of transacting is low and the speed of execution is high is known as a(an) _____ efficient market.

When a series of prices, in general, represents a situation in which changes in the value of the prices are independent and identically distributed, we refer to the series as a

The demand-to-buy schedule for shares assumes

Which one of the following would best justify an investor hiring an active portfolio manager even though markets have been shown to be semistrong-form efficient?

A description of the quantities of a security that an investor is prepared to purchase at various possible prices is called a ______ schedule.

A level of market efficiency in which all relevant publicly available information is fully and immediately reflected in security prices is called a ______ efficient market.

If an investor feels more optimistic about the future of a stock, he will

A description of the quantities of a security that an investor is prepared to sell at various possible prices is called a _______ schedule.

The random walk with drift theory of stock prices holds that

The largest volume of share trading will occur when the price

Major markets in thare

A level of market efficiency in which all previous security price and volume data are fully and immediately reflected in current security prices is called a ____ efficient market.

In a perfectly efficient market