Question
1. The efficient markets hypothesis implies that a. Above-market returns cannot be expected by an investor b. Stock prices follow a random walk c. Regular
1. The efficient markets hypothesis implies that
a. Above-market returns cannot be expected by an investor | ||
b. Stock prices follow a random walk | ||
c. Regular intramonthly patterns in stock prices cannot persist | ||
d. All of the above |
2.
Which of the following affect the interest rate used to discount future cash flows?
a. The degree of impatience or time preference on the part of surplus units | ||
b. The returns that deficit units can earn on investment projects | ||
c. The interaction of a and b | ||
d. All of the above |
3.
Businesses
a. Are deficit units because the profit-maximizing level of investment outlays exceeds their internally generated funds | ||
b. Are deficit units because of managerial largesse | ||
c. Are surplus units | ||
d. None of the above |
4.
When the price of a financial asset embodies all available information bearing on its value, this reflects
a. The Fisher effect | ||
b. The term premium hypothesis | ||
c. The efficient markets hypothesis | ||
d. None of the above |
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