If you test the market to see whether insiders can make extra profit, it is a test of the maker efficiency in its ________ form. A . semi-strong B . weak C . strong D . random
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If you test the market to see whether insiders can make extra profit, it is a test of the maker efficiency in its ________ form.
A . semi-strongB . weakC . strongD . random
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- Assume that the efficient market hypothesis holds.Marcos has been recently hired by a brokerage firm andclaims that he now has access to the best market information. However, he is the “new guy,” and no one atthe firm tells him much about the business. Would youexpect Marcos’s clients to be better or worse off thanthe rest of the firm’s clients?Which of the following statements is incorrect? Select one: A. It is possible for markets to be efficient with respect to some information and inefficient with respect to other information B. It is possible for some markets to be more efficient than others C. The market is likely to be more efficient with respect to companies where there is greater analyst following D. The market is totally efficient with respect to companies providing regular dividends to investorsThe weak-form of EMH implies which of the following may be used to earn an abnormal return and beat the market(a) Technical analysis using all past price information (b) Fundamental analysis using company accounts’ data (c) Insider trading (d) Both answers B and C
- The weak form of the efficient market hypothesis implies that: CHOOSE ONE A. Investors can achieve abnormal returns, on average, using technical analysis, after adjusting for transaction costs and taxes. B. Insiders, such as specialists and corporate board members, cannot achieve abnormal returns on average. C. No one can achieve abnormal returns using market information. D. NONE OF THE ABOVEWhat are the features of a perfectly competitive market? Give two examples of competitive markets. How could a firm in such a market move to a less competitive market?Which of the following statements regarding arbitrage is the most correct? A) Any situation in which it is possible to make a profit without taking any risk is known as an arbitrage opportunity. B) Any situation in which it is possible to make a profit without making any investment is known as an arbitrage opportunity. C) We call a competitive market in which there are no arbitrage opportunities an arbitrage market. D) The practice of buying and selling equivalent goods in different markets to take advantage of a price difference is known as arbitrage.
- An efficient market is one in which no one can profit from having a better information than the rest. Is the statement true or false or uncertainAn efficient market is one in which no one ever profits from having better information than the rest. Discuss this statement and whether or not you find this to be true, false or are you uncertain. Why?In the strong form of the market accoarding to the Efficient Market Hypothesis investor can earn excess returns by usin the available information. Select one: a. False b. True
- Which of the following is NOT something that is needed for a market to be efficient? A. A large number of buyers and sellers. B. Information being released in a random fashion. C. No transactions costs. D. None of the above. (In other words, ALL of the above are necessary for a market to be efficient.)What are some advantages of invetsting in industy competitors? ie., You own stock in Walgreens and you also choose to invest in a competitor such as CVS How would investing in an industry's competitor help ensure a satisfactory return even if the original company's value depreciates?You observed that high-level managers make superior returns on investments in their company’s stock. Would this be a violation of weak-form market efficiency? Would it be a violation of strong-form market efficiency?
