Multiple Choice
Google has a beta of 1.0. The annualized market return yesterday was 11%, and the risk-free rate is currently 5%. You observe that Google had an annualized return yesterday of 14%. Assuming that markets are efficient, this suggests that
A) bad news about Google was announced yesterday.
B) good news about Google was announced yesterday.
C) no news about Google was announced yesterday.
D) interest rates rose yesterday.
E) interest rates fell yesterday.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: The difference between a random walk and
Q20: Cumulative abnormal returns (CAR)<br>A) are used in
Q23: In an efficient market the correlation coefficient
Q24: A hybrid strategy is one where the
Q27: A common strategy for passive management is<br>A)
Q33: Jaffe (1974) found that stock prices _
Q37: The debate over whether markets are efficient
Q56: The Food and Drug Administration (FDA) just
Q57: On November 22, the stock price of
Q61: QQAG has a beta of 1.7. The