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Quiz 5 asdas dasd asdasdas das dasadasdasdsad asdasd asd asd asd asd asdas asd asd asd asd asd asd asd asd asdas das as asd asd asd asd asd asd asd asd asd asd asd asd asd asd asd asdasdasda sddasdsa

asdas dasd asdasdas das dasadasdasdsad asdasd asd asd asd asd asdas as...
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Science (BIO201)

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Which of the following statements is true? The correct answer is: If a market is semi-strong-form efficient, it must also be weak-form efficient.

Question 2 Which of the following statements is true? Select one: a. If a market is weak-form efficient, it is impossible to consistently earn an abnormal return using publicly available information.

b. If a market is semi-strong-form efficient, it is impossible to consistently earn an abnormal return using publicly available information.

c. If a market is strong-form efficient, it is impossible to consistently earn an abnormal return using publicly available information.

d. Both (b) and (c).

Feedback The correct answer is: Both (b) and (c).

Question 3 Which of the following is an example of a way in which you could gain information that is part of the information set related to weak-form efficiency? The correct answer is: Downloading historic daily share price data from a website such as Yahoo! Finance.

Question 4 Which of the following would be evidence that the market is not semi-strong-form efficient? Select one: a. Mechanical trading rules consistently outperform a "buy and hold" strategy.

b. Analysis of publicly available information enables mispriced securities to be consistently identified.

c. Investors with private information are able to buy or sell shares prior to the release of the information, and consistently achieve an abnormal return.

d. Both (a) and (b).The correct answer is: Both (a) and (b).

Which of the following best describes the results of studies designed to test whether or not the ASX is semi-strong-form efficient? The correct answer is: Event studies show that prices react quickly to new information, and therefore they are consistent with semi-strong-form efficiency.

Question 1 Which of the following statements is true? The correct answer is: The information set relating to strong-form efficiency includes the other two information sets.

Question 2 Which of the following will NOT enable you to consistently earn an abnormal return if a market is weak-form efficient but not semi-strong-form efficient? The correct answer is: Charting

Question 3 Which of the following is an example of a way in which you could gain information that is part of the information set related to strong-form efficiency? The correct answer is: Chatting about a company's future prospects while playing golf with the company's Chief Executive Officer.

Question 4 Which of the following would be evidence that the market is not weak-form efficient? Select one: a. There is a predictable relationship between successive price changes.

b. Mechanical trading rules consistently outperform a "buy and hold" strategy.

c. Analysis of publicly available information enables mispriced securities to be consistently identified.

d. Both (a) and (b).

Feedback The correct answer is: Both (a) and (b).

Which of the following would be evidence that the market is not semi-strong-form efficient? Select one: a. There is a predictable relationship between successive price changes.

b. Analysis of publicly available information enables mispriced securities to be consistently identified.

c. Investors with private information are able to buy or sell shares prior to the release of the information, and consistently achieve an abnormal return.

d. Both (a) and (b).

Feedback The correct answer is: Both (a) and (b).

Question 5 If event studies showed that share prices in a market react immediately, but consistently under-react, what would you do to make an abnormal return? Select one: a. Sell after good news is released and buy after bad news is released.

b. Sell after both good news and bad news are released.

c. Sell after bad news is released and buy after good news is released.

d. Buy after both good news and bad news are released.

Feedback The correct answer is: Sell after bad news is released and buy after good news is released.

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Quiz 5 asdas dasd asdasdas das dasadasdasdsad asdasd asd asd asd asd asdas asd asd asd asd asd asd asd asd asdas das as asd asd asd asd asd asd asd asd asd asd asd asd asd asd asd asdasdasda sddasdsa

Course: Science (BIO201)

14 Documents
Students shared 14 documents in this course
Was this document helpful?
Question 1
Which of the following statements is true?
The correct answer is: If a market is semi-strong-form efficient, it must also be weak-form
efficient.
Question 2
Which of the following statements is true?
Select one:
a.
If a market is weak-form efficient, it is impossible to consistently earn an abnormal return
using publicly available information.
b.
If a market is semi-strong-form efficient, it is impossible to consistently earn an abnormal
return using publicly available information.
c.
If a market is strong-form efficient, it is impossible to consistently earn an abnormal return
using publicly available information.
d.
Both (b) and (c).
Feedback
The correct answer is: Both (b) and (c).
Question 3
Which of the following is an example of a way in which you could gain information that is
part of the information set related to weak-form efficiency?
The correct answer is: Downloading historic daily share price data from a website such as
Yahoo! Finance.
Question 4
Which of the following would be evidence that the market is not semi-strong-form efficient?
Select one:
a.
Mechanical trading rules consistently outperform a "buy and hold" strategy.
b.
Analysis of publicly available information enables mispriced securities to be consistently
identified.
c.
Investors with private information are able to buy or sell shares prior to the release of the
information, and consistently achieve an abnormal return.
d.
Both (a) and (b).The correct answer is: Both (a) and (b).