true or false: for the EMH to be true, all investors would need to be sophisticated
true or false: for the EMH to be true, all investors would need to be sophisticated
true or false: for the EMH to be true, all investors should have enough wealth to buy and sell.
All else being equal, high expense ratio negatively affects returns to fund investors True or False True False
Angel investors are usually public investors. Group of answer choices True False
Which of the following statements does the EMH imply? Select all that are true Future prices are unknowable. It is possible to beat the return of the market at the market risk. Information is incorporated into the price over time. Information has no value when determining the price of a security.
True or false and why? 5. If all investors in the market become less risk-averse, the slope of the Security Market alone (SML) will decrease. 6. If an investor purchase a enough stocks (say, S&P500 index), the investor can eliminate all of the market risk embedded in those stocks.
If the CAPM assumptions are true, then it follows that all investors hold the same portfolio. Is this statement true or false? Explain why your answer makes sense.
true or false: the coupon rate on a bond measures the investors return on their investment.
PLEASE EXPLAIN WHY ANSWER IS TRUE OR FALSE: "Risk aversion" implies that investors require higher expected returns on riskier than on less risky securities. a. True b. False When adding a randomly chosen new stock to an existing portfolio, the higher (or more positive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk. a. True b. False An individual stock's diversifiable risk, which is measured...
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...
True or False: Because capital gains are not taxed, most investors discourage the distribution of dividends.