1) Which of the following will NOT enable you to consistently earn an abnormal return if a market is weak-form efficient but not semi-strong-form efficient?

Select one:

a. Technical analysis

b. Analysis of publicly available information

c. Use of private information

d. Both (a) and (c)

2) Which of the following causes a market to be weak-form efficient?

Select one:

a. Investors analysing past prices and buying shares they think are more likely to increase than decrease, pushing prices up until the share price reflects any information contained in the pattern of past prices.

b. Investors analysing past prices and selling shares they think are more likely to decrease than increase, pushing prices down until the share price reflects any information contained in the pattern of past prices.

c. Investors analysing past prices and selling shares they think are more likely to increase than decrease, pushing prices down until the share price reflects any information contained in the pattern of past prices.

d. Both (a) and (b).

3) Which of the following will NOT enable you to consistently earn an abnormal return if a market is semi-strong-form efficient but not strong-form efficient?

Select one:

a. Technical analysis

b. Fundamental analysis

c. Insider trading

d. Both (a) and (b)

4) Which of the following causes a market to be strong-form efficient?

Select one:

a. Investors using private information and buying shares they think will increase in price when the information becomes public (and possibly other investors copying them), pushing prices up until the share price reflects any information contained in the pattern of past prices.

b. Investors using private information and selling shares they think will increase in price when the information becomes public (and possibly other investors copying them), pushing prices down until the share price reflects any information contained in the pattern of past prices.

c. Investors using private information and selling shares they think will decrease in price when the information becomes public (and possibly other investors copying them), pushing prices down until the share price reflects any information contained in the pattern of past prices.

d. Both (a) and (c).