1.If stock prices usually rise as money supply is loosened, should you expect to make excess returns by immediately buying stocks when you see money supply suddenly rose sharply last week?

2.Must you continue to listen to your brokers advices if she has been right in her 5 previous buy-sell recommendations?

3.An efficient market is one where no one ever profits from having better information than the rest. True or False?

4.If security analysts all predict a stocks fair market value to be $25, should you expect the stock to always trade around $25? Explain.

5.Do financial crises (e.g., the internet bubble (2000-01) or the subprime crisis (2007-8)) where stock prices collapsed mean the market was inefficient?

6.Stock currently selling at $65.88 expects a $1 dividend every year. What is its price in 5 years if the required return is 10%?

7.A stock last year paid $2 per share in dividend, and the dividend is expected to grow 5% per year indefinitely. What is the stocks current fair market (intrinsic) value is the required cost of equity is 10%?