QUESTION 74 Which of the following are premises in Traditional Finance? Markets are inefficient Investors are...
QUESTION 74 Which of the following are premises in Traditional Finance? Markets are inefficient Investors are Irrational Markets are Efficient. Investors are Rational Both c and d.
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...
SC ous efforts to identify inefficiencies in the market QUESTION 5 An investor shorts 2500 shares of Testla Motors at $200 per share. If the investor has a margin requirement of 25%, as Testla increases in value, at what price per share can the investor expect to receive a margin call? A. $800.00 B. $250.00 C. $266.67 D. $160.00 QUESTION 6 while behavioral finance assumes that investors are The Efficient Market Hypothesis assumes that investors are . Proctorioit A. irrational,...
According to the behavioral finance, what is the implication of irrational markets? a) Security prices are never overvalued or undervalued. b) There exists gaps between securities intrinsic and market prices but are extremely hard to identify them on time. c) There are no gaps between securities intrinsic and market prices and therefore markets are beatable. d) There exists gaps between securities intrinsic and market prices and are easy for ordinary investors to identify them on time.
1) Markets are efficient because people make choices. a) individual b) irrational c) rational d) good Submit
In markets where a positive externality is involved we expect: Select one: a. Inefficient overproduction of the good b. Taxes can incentivize market participants to bring about the efficient outcome c. Inefficient underproduction of the good d. The private benefit of the good exceeds the social benefit of the good
In markets where a positive externality is involved we expect: Select one: a. Inefficient overproduction of the good O b. Taxes can incentivize market participants to bring about the efficient outcome o c. Inefficient underproduction of the good d. The private benefit of the good exceeds the social benefit of the good
Please write 2-23 paragraphs providing a scientific and thoughtful opinion about this Behavioral Finance question. One could argue that neither the classical finance assumption of rationality of investors is correct nor are the markets entirely irrational. Discuss the merits and demerits of these alternative philosophies about asset pricing.
Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that apply. Changes in stock prices can be accurately predicted by investors. Changes in stock prices are impossible to predict. Stock markets reflect all available information about the value of stocks.
Which of the following statements is false? A. If investors have a high disagreement concerning the value of a publicly traded firm, and it is also difficult to short sell the firm’s shares, then the firm’s stock might become overpriced. B. During bubbles, the behavior of many investors appears irrational. C. Most tests of technical analysis strongly suggest that past returns and other market generated data can be easily exploited to create portfolios that generate positive alphas. D. Portfolios of...