Professional Documents
Culture Documents
2 Points
2 Points
Aggressive
Diversified
Fundamental
Passive
Statement 1 is true.
Statement 2 is true.
Both statements are true.
Both statements are false.
A simple example that illustrates the random walk notion is the flipping of a coin.
Despite a positive trend in stock prices, price changes may still follow a random walk.
Trading strategies based on historical market data are known as fundamental analysis.
If the market is semi-strong-form efficient, a diligent study of financial statements is of no
economic value.
The second and fourth statements are both false.
This EMT states that only past price information is reflected in prices. *
2 points
semi-strong form.
Weak form.
Strong form.
Semi-weak form
random stock price changes are evidence for all forms of the EMT.
strong form of the EMT.
semi-strong form of the EMT.
weak form of the EMT.
The evidence that stocks with low price-to-earnings ratios tend to have higher
returns is an example of *
2 points
event anomalies.
seasonal anomalies.
accounting anomalies.
firm anomalies.
statistical anomalies.
The future value of future dividends after the horizon date is classified as *
2 points
hypothesis value
horizon value
terminal value
both B and C
This form hypothesis says that all publicly available information regarding the
prospects of a firm already must be reflected in the stock price. Information would
be past prices, fundamental data on the firm's product line, quality of management,
balance sheet composition, patents held, earnings forecasts and accounting
principles.
2 points
Weak
Semi-strong
Strong
Perfect