This is the violation of strong form of efficiency.
Answer: strong form of efficiency.
They are 3 levels of Market efficiency:
1. Strong efficiency: Insider information, fundamental analysis and
technical analysis are unless in such a market.
2. Semi- Strong: fundamental analysis and technical analysis are
unless in such a market.
3. Weak: technical analysis is unless in such a
market.
Insiders are able to earn abnormal returns on trades in their firms' stock. This is a...
Someone who invests in the hedge funds could most accurately be described as using which approach? Multiple Choice Technical management Active management Arbitrage management Passive investment Which of the following contradicts the proposition that the stock market is semistrong-form efficient? Multiple Choice Over 25% of mutual funds outperform the market on average. Insiders earn abnormal trading profits. Applications of technical trading rules fail to earn abnormal returns. Every January, the stock market earns above-normal returns. Assume that a company announces...
Which of the following would be a violation of weak form efficiency? Transportation compans' share price drops after a sudden rise in oil prices. Companies with higher beta earn higher returns. Insiders are unable to earn abnormal returns by trading in their company's stock. Returns on Fridays are higher than returns on Mondays, on average.
Technical Analysis, properly conducted, will, on average, produce market beating returns according to which market efficiency hypothesis? Technical analysis should not be able to produce consistently market beating returns, regardless of the market efficiency hypothesis. Weak Form. Strong Form. Semi-Strong Form.
Weak form market efficiency implies that portfolio managers should not be able to achieve abnormal returns by looking at stock price trends to make investment decisions. True O False
(b) economically ellilier Do you think investors can earn abnormal returns in financial markets that are at least semistrong-form efficient? 3-3
6. Based on earning announcements of firms’ annual results, you find it hard to earn abnormal return. Is it consistent with EMH? If yes, which form of EMH (strong, semi-strong, strong)?
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...
28. A person is able to earn superior returns from watching “Street Signs” on CNBC on a regular basis. With respect to the efficient market hypothesis (EMH), this (a) (b) (c) (d) Is consistent with the semi-strong form Violates the semi-strong form Violates the weak form Is consistent with all forms
11. Fama and French (1991) and Reinganum (1988) found that firms with low market/book ratios had higher stock returns. This study provides evidence against __________ . A) Technical analysis B) Fundamental analysis C) Semi-strong form of market efficiency D) Strong form of market efficiency
5. If you believe in the form of the EMH, you believe that stock prices reflect all relevant information, including historical stock prices and current public information about the firm, but not information that is available only to insiders. A. semistrong B. strong C. weak D. All of the options are correct. E. None of the options are correct.