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