The efficient market hypothesis states that current security prices will fully reflect all available information, because...
The efficient market hypothesis states that current security prices will fully reflect all available information, because in an efficient market, all unexploited profit opportunities are eliminated. The elimination of unexploited profit opportunities necessary for a financial market to be efficient does not require that all market participants be well informed. The efficient markets hypothesis implies that stock prices generally follow a random walk.
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The efficient market hypothesis states that current security
prices will fully reflect all available information, because...
Weak form market efficiency implies a) current security prices reflect all historical information and react slowly...
Weak form market efficiency implies a) current security prices reflect all historical information and react slowly to new public information. b) current security prices reflect all historical information and react slowly to new public and private information. c) current security prices reflect all historical information and react quickly to new public information. d) current security prices reflect all historical information.
If the efficient market hypothesis holds, which of the following statements are true? prices do not...
If the efficient market hypothesis holds, which of the following statements are true? prices do not fluctuate security prices change for no discernible reason future events can be forecast with perfect accuracy prices reflect all available information
1. The efficient markets hypothesis implies that a. Above-market returns cannot be expected by an investor...
1. The efficient markets hypothesis implies that a. Above-market returns cannot be expected by an investor b. Stock prices follow a random walk c. Regular intramonthly patterns in stock prices cannot persist d. All of the above 2. Which of the following affect the interest rate used to discount future cash flows? a. The degree of impatience or time preference on the part of surplus units b. The returns that deficit units can earn on investment projects c. The interaction...
The efficient market hypothesis implies that..... A. efficient markets will tend to have fixed prices from...
The efficient market hypothesis implies that..... A. efficient markets will tend to have fixed prices from one day to the next B. any investment should earn a normal return commensurate with the investment's risk C. all investments should earn the same average rate of return over time D. stock prices are only efficient when all investors review their portfolios on a daily basis.
Which of the following is TRUE of efficient-market hypothesis? Since stocks are fully and fairly priced,...
Which of the following is TRUE of efficient-market hypothesis? Since stocks are fully and fairly priced, it follows that investors should not waste their time trying to find and capitalize on miss-priced (undervalued or overvalued) securities. Securities are typically in disequilibrium, meaning they are fairly priced and their expected returns are more than their required returns. At any point in time, security prices fully reflect all internal information available about the firm and its securities, and these prices are insensitive...
Which of the following are consistent with the efficient market hypothesis? Check all that apply. It is...
Which of the following are consistent with the efficient market hypothesis? Check all that apply. It is worth hiring a financial adviser to find cheap stocks to purchase. Stock markets reflect all available information about the value of stocks. Changes in stock prices are impossible to predict.
23. The efficient market hypothesis implies that markets will always reflect fair and Fequilibrium pricing. a....
23. The efficient market hypothesis implies that markets will always reflect fair and Fequilibrium pricing. a. true b. false 24. Mutual funds generally generate and distribute returns to shareholders by: a. returning fees to shareholders, share price appreciation and paying dividends b. passing on earned income, share price appreciation and distributing capital gains c. reducing fund expenses, passing on kickbacks, share price appreciation d. none of the above
An efficient market hypothesis states in which all public or private information is reflected in current...
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as O semi strong efficiency weak form efficiency strong form efficiency All of the above None of the above answers
In an efficient capital market, all security investments will have a(n) ____. a. NPV of zero...
In an efficient capital market, all security investments will have a(n) ____. a. NPV of zero b. positive NPV c. required rate of return that exceeds the cost of capital d. required rate of return that is zero --------------------------------------------------------------------------- Capital markets are said to be efficient. This means _____. a. accurate stock quotes are quickly available to all investors b. security prices quickly reflect all economically relevant information c. they process stock trades accurately and quickly d. the market provides...
1) The form of informational market efficiency that states that current market prices fully reflect all...
1) The form of informational market efficiency that states that current market prices fully reflect all information contained in past price movements is known as the _____. a. weak-form efficiency b. economic efficiency c. semistrong-form efficiency d. real-time efficiency e. strong-form efficiency , 2) What is the primary reason an investment banking firm often forms an underwriting syndicate to sell new securities? a. To spread the risk associated with the purchase and distribution of a new issue of securities b....
If the efficient market hypothesis holds, which of the following statements are true? prices do not fluctuate security prices change for no discernible reason future events can be forecast with perfect accuracy prices reflect all available information
Which of the following are consistent with the efficient market hypothesis? Check all that apply. It is worth hiring a financial adviser to find cheap stocks to purchase. Stock markets reflect all available information about the value of stocks. Changes in stock prices are impossible to predict.
23. The efficient market hypothesis implies that markets will always reflect fair and Fequilibrium pricing. a. true b. false 24. Mutual funds generally generate and distribute returns to shareholders by: a. returning fees to shareholders, share price appreciation and paying dividends b. passing on earned income, share price appreciation and distributing capital gains c. reducing fund expenses, passing on kickbacks, share price appreciation d. none of the above
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as O semi strong efficiency weak form efficiency strong form efficiency All of the above None of the above answers
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