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.
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...
Derivative markets make stock and bond markets less efficient. True False
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...
Advertising is most widely seen in monopolistically competitive markets and oligopoly markets. True False In the long run, only monopolists and oligopolists can make positive economic profits. True False When markets do not lead to the most efficient allocation of resources for society as a whole, then there has occurred market failure. True False The most efficient point of production occurs at the bottom of the average total cost (ATC) curve. True False Oligopoly markets are different from other market...
Regarding market efficiency, which of the following is true? a.) Equities markets are perfectly efficient. There has never been an opportunity to make an abnormal profit within the major equities markets. b.) Equities markets are very efficient. In the past, profit-taking opportunities have occasionally occurred, and some have been well-documented in finance literature. However, such anomalies are quite difficult to spot except in retrospect. c.) Equities markets are only somewhat efficient, and abnormally profitable strategies can usually be uncovered given...
Semi-strong-form efficient markets are not weak-form efficient. Group of answer choices A) True B) False
Select all that is/are true or false about the financial markets. a. Financial markets bring the buyers and sellers of debt and equity together. b. Stocks trading on an organized exchange such as the NYSE are also referred to as listed securities c. Securities traded between two shareholders happen in the primary market. d. When a firm first sells shares to the public this is a primary market transaction. e. The OTC market has a central location and is...
Are the following statements true? Statement 1: If financial markets are not informationally efficient, they will not be allocationally efficient. Statement 2: Most tests of semistrong form efficiency are based on technical trading rules. A. Yes. B. No. Both are not true. C. No. Only statement 1 is true. D. No. Only statement 2 is true.
The Efficient Market Hypothesis says that on average, investors are not likely to consistently earn returns above those expected for the risk. True or False?
true or false: financial markets encourage the generation of information by entities that have comparative advantage in such research