17. There is considerable theory on evidence that securities markets are not fully efficient. This leads to the suggestion that accountants should adopt A measurement perspective. Why does security market inefficiency suggest a measurement perspective ?

a. a measurement perspective reduces excess stock volatility

b. there is evidence that a measurement perspective will reduce post announcement drift

c. a measurement perspective increases decision usefulness for investors subject to behavioral biases

d. prospect theory predicts that investors prefer fair value accounting

18. In the study of efficient security markets, researchers formalized the relationship between the risk and the expected risks of a security by means of which of the following ?

a. black/scholes formula

b. Bayes theorem

c .clean surplus theory

d the capital asset pricing model

19. Which of the following statements explain why efficient securities market anomalies continue to persist overtime ?

a. because financial information available to investors is not completely relevant and completely reliable

b because of the activity of noise traders, whose decisions to trade are not based on rational evaluation of information

c because many securities in which the anomalies are concentrated trade frequently

dbecause of the high cost of investment strategies to exploit the anonymize

20 There is an increase in the relevance of information by using the _______ and the ______ _results in more reliable information

a.future reporting, historical reporting

b.information perspective, measurement perspective

c.historical reporting, future reporting

d.measurement perspective, information perspective