2. MCQ - The fact that superior returns cannot be made by selling stocks that cut dividends is evidence of a. weak-form efficiency b. semi-strong-form efficiency c. strong-form efficiency 3. MCQ - Tests of market efficiency tend to a. look for statistical dependencies that exist in price changes over time b. measure the nature of the impact of new information on security prices as that new information becomes available c. search for trading systems that might be able to generate abnormal profits d. all of the above 8 4. MCQ - Which of the following is an implication of market efficiency? a. Resources are allocated among firms that put them to the best use b. No investor will do better than the S\&P 500 in any time period c. No investor will do better than the S\&P 500 consistently d. No investor will do better than the S\&P 500 consistently after adjusting for risk e. No investor will do better than the S\&P 500 consistently after adjusting for risk and transactions costs