1.

A bond that is sold to investors in the domestic market, denominated in a foreign currency, and issued by a company from a foreign country, is called a: Select one: a. Euro bond b. investment-grade bond c. junk bond d. AAA bond e. zero-coupon bond

2. According to the theory of the efficient market hypothesis', which of the following statements is CORRECT?

Select one:

a. It has been proven that shares are not fully and fairly priced, so investors should spend time searching for mispriced (overvalued or undervalued) securities.

b. At any point in time, security prices do not fully reflect all public information available about the firm and its securities, and these prices react very slowly to new information.

c. Since securities are fully and fairly priced, it follows that investors should accept the same level of stock returns regardless of the risk tolerance.

d. Securities are typically in equilibrium, meaning they are fairly priced and their expected returns are greater than their required returns.

e. Variations in investors' assessments of a company's future lead to changes in the market for its shares, leading to a change in the price of the shares.