1. Private markets are those like unlisted stocks and hedge funds, where transactions are made between a small members of investors, while public markets are those like the NASDAQ, where anyone can make transactions. (True or False)

2. Which of the following statements are correct?

I. Futures are standardized contracts traded on exchanges to buy/sell specific assets at a specified price at a certain future date.

II. An oil refining firm buying crude oil futures to lock in the cost of crude oil is an act called arbitrage.

III. Dealers buy from investors at the bid price and attempt to sell at the higher asking price to make profit.

IV. ECN is fully automatic computerized system that allows investors to trade securities electronically without human intervention.

Select one:

a. I, II, III

b. II, III, IV

c. All of them

d. I, III, IV

3. The objectives of market regulations do not include ______________

Select one:

a. To reduce frauds of listed companies

b. To maintain a fair and orderly market

c. Investors have equal access to information

d. To ensure profit for investors

e. To reduce settlement risk in financial transaction

4. Which of the following statements about market efficiency is incorrect?

Select one:

a. If the Efficient Market Hypothesis holds, the prices of stocks are close to their intrinsic values. Therefore, investors can pick any stock and will not lose money.

b. If markets are only weakly efficient, analyzing corporate financial reports may help you get insight and develop useful investment strategies.

c. If markets are semi-strong efficient, investors will be better off buying low-fee market index funds than high-fee actively managed mutual funds

d. If markets are weakly efficient, technical analysis won't be consistently useful

5. Which of the following about behavioral finance critic of efficient market hypothesis is incorrect?

Select one:

a. None is incorrect.

b. Investors may become overconfident by previous success and then overbuild their position.

c. People view potential losses and gains asymmetrically. So investors often hold onto losing stocks for too long, causing losses to mount.

d. Stocks can be overpriced for prolonged period because it is hard for the correct few to work against a large wrong crowd.

e. No consistently useful investment strategies to be found doesn't prove that markets are efficient.