33.
In an efficient market,
34.
The weak form of the efficient market hypothesis asserts that
35.
A support level is the price range at which a technical analyst would expect the
36.
A finding that _________ would provide evidence against the semistrong form of the
efficient market theory.
37.
The weak form of the efficient market hypothesis contradicts
38.
Two basic assumptions of technical analysis are that security prices adjust
39.
Cumulative abnormal returns (CAR)
40.
Studies of mutual fund performance
41.
The likelihood of an investment newsletter’s successfully predicting the direction of the
market for three consecutive years by chance should be
42.
In an efficient market the correlation coefficient between stock returns for two
nonoverlapping time periods should be
43.
The weather report says that a devastating and unexpected freeze is expected to hit
Florida tonight, during the peak of the citrus harvest. In an efficient market one would
expect the price of Florida Orange’s stock to
44.
Matthews Corporation has a beta of 1.2. The annualized market return yesterday was 13%,
and the risk-free rate is currently 5%. You observe that Matthews had an annualized
return yesterday of 17%. Assuming that markets are efficient, this suggests that
45.
Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be
10% higher than last year’s fourth quarter. Nicholas had an abnormal return of -1.2%
yesterday. This suggests that
46.
When Maurice Kendall first examined stock price patterns in 1953, he found that
47.
If stock prices follow a random walk
48.
The main difference between the three forms of market efficiency is that
49.
Chartists practice
50.
Which of the following are used by fundamental analysts to determine proper stock
prices?
I) Trendlines
II) Earnings
III) Dividend prospects
IV) Expectations of future interest rates
V) Resistance levels
51.
Which of the following are used by technical analysts to determine proper stock prices?
I) Trendlines
II) Earnings
III) Dividend prospects
IV) Expectations of future interest rates
V) Resistance levels
52.
According to proponents of the efficient market hypothesis, the best strategy for a small
investor with a portfolio worth $40,000 is probably to