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42.
The primary purpose of Blume's formula is to:
43.
Which two of the following are the most likely reasons why a stock price
might not react at all on the day that new information related to the stock
issuer is released?
I. insiders knew the information prior to the announcement
II. investors need time to digest the information prior to reacting
III. the information has no bearing on the value of the firm
IV. the information was anticipated
44.
Which one of the following is most indicative of a totally efficient stock
market?
45.
Which one of the following statements is correct concerning market
efficiency?
46.
Efficient financial markets fluctuate continuously because:
47.
Inside information has the least value when financial markets are:
48.
According to theory, studying historical stock price movements to identify
mispriced stocks:
49.
Which of the following statements related to market efficiency tend to be
supported by current evidence?
I. Markets tend to respond quickly to new information.
II. It is difficult for investors to earn abnormal returns.
III. Short-run prices are difficult to predict accurately based on public
information.
IV. Markets are most likely weak form efficient.
50.
If you excel in analyzing the future outlook of firms, you would prefer the
financial markets be ____ form efficient so that you can have an advantage
in the marketplace.
51.
You are aware that your neighbor trades stocks based on confidential
information he overhears at his workplace. This information is not available
to the general public. This neighbor continually brags to you about the
profits he earns on these trades. Given this, you would tend to argue that
the financial markets are at best _____ form efficient.
52.
The U.S. Securities and Exchange Commission periodically charges
individuals with insider trading and claims those individuals have made
unfair profits. Given this, you would be most apt to argue that the markets
are less than _____ form efficient.
53.
Individuals who continually monitor the financial markets seeking mispriced
securities:
54.
One year ago, you purchased a stock at a price of $33.49. The stock pays
quarterly dividends of $0.20 per share. Today, the stock is selling for $28.20
per share. What is your capital gain on this investment?
55.
Six months ago, you purchased 100 shares of stock in Global Trading at a
price of $38.70 a share. The stock pays a quarterly dividend of $0.15 a
share. Today, you sold all of your shares for $40.10 per share. What is the
total amount of your dividend income on this investment?
56.
A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock
at a price of $8.62 per share. The stock pays an annual dividend of $0.10
per share. Today, you sold all of your shares for $4.80 per share. What is
your total dollar return on this investment?
57.
You own 400 shares of Western Feed Mills stock valued at $51.20 per
share. What is the dividend yield if your annual dividend income is $352?
58.
West Wind Tours stock is currently selling for $48 a share. The stock has a
dividend yield of 3.2 percent. How much dividend income will you receive
per year if you purchase 200 shares of this stock?
59.
One year ago, you purchased a stock at a price of $47.50 a share. Today,
you sold the stock and realized a total loss of 22.11 percent. Your capital
gain was -$12.70 a share. What was your dividend yield?
60.
You just sold 600 shares of Wesley, Inc. stock at a price of $32.04 a share.
Last year, you paid $30.92 a share to buy this stock. Over the course of the
year, you received dividends totaling $1.20 per share. What is your total
capital gain on this investment?
61.
Last year, you purchased 500 shares of Analog Devices, Inc. stock for
$11.16 a share. You have received a total of $120 in dividends and $7,190
from selling the shares. What is your capital gains yield on this stock?
