Chapter 9, Problem 4DQ

What is an economically meaningful corporate event from a shareholders’ ownership perspective? a. stock buyback b. stock split c. stock dividend

Will there be an effect on interest rates if brokeragecommissions on stocks fall? Explain your answer

According to the efficient market theory,     prices of actively traded stocks can be under- or over-valued in an efficient market, and bear searching out. prices of actively traded stocks do not differ from their true values in an efficient market. prices of actively traded stocks can only be under-valued in an efficient market prices of actively traded stocks can only be over-valued in an efficient market.

470 3 Which of the following is a reason (s) that US investors should consider foreign markets when constructing global portfolios? a. ignoring foreign markets reduced their choices of investment opportunities b. foreign markets have low correlations with us markets. c.  returns on non US stocks can substantially exceed returns for us securities d. all of the above e. none of the above