The Efficient Market Hypothesis says that on average, investors are not likely to consistently earn returns...
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The
Efficient Market Hypothesis says that on average, investors are not
likely to consistently earn returns...
1) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the manager took high risk. C. both (A) and (B) are true...
1) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the manager took high risk. C. both (A) and (B) are true. D. none of the above 2) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the model of risk which produced the result was flawed or incomplete. C....
Which of the following outcome(s) are most likely to be inconsistent with the efficient market hypothesis...
Which of the following outcome(s) are most likely to be inconsistent with the efficient market hypothesis in a Fama-French three-factor world? a. Higher market beta stocks have higher returns. b. All stocks have the same return on average. c. Even though DFA recently offered small and value portfolios, which focus on earning the high returns in small and value stocks, investors do not feel such stock portfolios offer more attractive investment opportunities in terms of risk-return tradeoff than other stock...
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.
The efficient markets hypothesis
1: True or False: The efficient markets hypothesis holds only if all investors are rational.False2: Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to “beat” the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency that reflect what...
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...
True or False: The efficient markets hypothesis holds only if all investors are rational. O True...
True or False: The efficient markets hypothesis holds only if all investors are rational. O True O False Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency...
Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a....
Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a. The strong form state prices reflect all information, including public and private b. Semi strong form Implies that fundamental analysis will not lead to abnormal returns c. If the market is weak form efficient, then investors can earn abnormal returns by trading on market information d. Strong form Implies that technical analysis will not lead to abnormal returns e. All of the answers are...
true or false: the efficient market hypothesie says that financial markets are efficient- they have minimum operational costs of running the market.
true or false: the efficient market hypothesie says that financial markets are efficient- they have minimum operational costs of running the market.
A proponent of the efficient markets hypothesis would be most likely to agree with which of...
A proponent of the efficient markets hypothesis would be most likely to agree with which of the following statements? When a security has recently been experiencing high rates of return, it's likely to experience less-than-average rates of return in the future. After adjusting for things like transactions and information costs, stocks sell for a good approximation of their fundamental value. Over the long run, financial investment in small firms has been more profitable than in large firms. All of the...
a)Which of the following strategies violate all three forms of the Efficient Market Hypothesis? [I] Buying companies tha...
a)Which of the following strategies violate all three forms of the Efficient Market Hypothesis? [I] Buying companies that have a name starting with letter “A” and shorting companies that have a name starting with letter “Z” consistently generate abnormal profits for investors. [II] Buying companies that announce positive accounting profits and shorting companies that announce negative account profits consistently generate abnormal profits for investors. b)Post Earnings Announcement Drift (PEAD) is NOT a violation of which form(s) of the Efficient Market...
True or False: The efficient markets hypothesis holds only if all investors are rational. O True O False Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency...
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