Multiple Choice
XRCO has a beta of 1.7. The annualized market return yesterday was 13%, and the risk-free rate is currently 3%. You observe that XRCO had an annualized return yesterday of 20%. Assuming that markets are efficient, this suggests that
A) bad news about XRCO was announced yesterday.
B) good news about XRCO was announced yesterday.
C) no significant news about XRCO was announced yesterday.
D) interest rates rose yesterday.
E) interest rates fell yesterday.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Two basic assumptions of technical analysis are
Q15: If stock prices follow a random walk,<br>A)
Q16: _ focus more on past price movements
Q17: The difference between a random walk and
Q18: _ above which it is difficult for
Q20: Cumulative abnormal returns (CAR)<br>A) are used in
Q21: The weak form of the efficient-market hypothesis
Q22: Chartists practice<br>A) technical analysis.<br>B) fundamental analysis.<br>C) regression
Q23: In an efficient market the correlation coefficient
Q24: A hybrid strategy is one where the