1. Concerning EMH, which of the following are not true?

a. In semi-strong form, all investors freely and immediately know private information.

b. Technical analysis is public information and is therefore baked into the stock price.

c. The theory implies that equity prices are always correct and reflect all known information.

d. The theory implies that it is impossible to beat the market over time.

2. An investor buys Wealth Enterprises for $40. He expects the firm's earnings and dividends to grow at an annual rate of 7%. The firm expects to pay a dividend of $2.00 next year. The market risk premium is 8%. The investor's expected rate of return is:

a. 11.75%

b. 12.35%

c. 10.35%

d. 12.00%

3. You buy a 55-strike call for $3.45. What is the breakeven price of the underlying?

4. You intend to purchase a 10-year, $1,000 par value bond is currently priced at $802.50 and pays interest of $60 every six months. What is the yield-to-maturity?