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1. What does the efficient markets hypothesis suggest? Select one: a. Asset prices immediately reflect the available information related to those assets, markets are efficient
1. What does the efficient markets hypothesis suggest? Select one: a. Asset prices immediately reflect the available information related to those assets, markets are efficient at integrating information into prices. b. Markets are efficient if they always provide investors with assets from which they can make a profit. Markets in which profits are not guaranteed are considered inefficient. c. Investors do not disclose the information they have about the markets that are most efficient for them to profit, so these investors can make extraordinary profits for a long time from those efficient markets
2. According to the efficient markets hypothesis ... Select one: a. It is not necessary for all investors to have all the information, it is enough for some investors to be on the lookout for exceptional profit opportunities for the markets to move quickly to their equilibrium price b. It is important to disclose as much information as possible to all possible investors, until most investors have all the information, markets are not going to go to their equilibrium price c. It is essential that all investors in a market know the updated information of each asset in that market so that their price can be directed to their equilibrium price, which in practice is almost impossible and that is why the markets never arrive. at its equilibrium price
3. If the strong version of the efficient markets hypothesis is correct ... Select one: a. Only the person who has information about an asset that no one else has should invest b. Any investment in an asset is as good as the others c. The price of financial assets should not change, neither rise nor fall
4. When do you talk about a "financial bubble"? Select one: to. When the price of an asset in the market grows well above its fundamental value b. Around Halloween. Investors use the term "bubbles" instead of "witches" because many think that it brings them bad luck, even when it has been proven that this is not the case. c. When investors in a market voluntarily isolate themselves for hours in their offices, so as not to be distracted when making their financial forecasts. It is a recommended technique to arrive at the optimal forecasts.
5. What do behavioral finance theorists like Robert Schiller argue? Select one: a. Investors' behavior is incomprehensible most of the time, it cannot be explained either from economic rationality, or from psychology, or taking into account their possible emotions, or anything. And because it is incomprehensible, it is unpredictable. b. Investors' behavior cannot be explained from economic rationality, in many cases it is better explained as behavior based on their emotions and psychological aspects c. Investors' behavior can always be explained from economic rationality, even when it seems a behavior based on their emotions and psychological aspects, it can actually be shown that they are being guided exclusively by rationality
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