21. The ________ theory is the most widely accepted theory of the term structure of interest rates because it explains the major empirical facts about the term structure so well.

A) liquidity premium

B) market segmentation

C) expectations

D) PK Bond

E) none of the above

22. Which of the following types of information will most likely enable the exploitation of a profit opportunity?

A) Financial analysts' published recommendations

B) Technical analysis

C) Hot tips from a stockbroker

D) Insider information

E) Any Friend of PKs

23. An arrangement with a broker to borrow stocks from them and then sell it in the market, with the hope that they earn a profit by buying the stock back again after it has fallen in price is

A) behavioral finance.

B) short sales.

C) smart money.

D) random walk.

E) insider trading

24. Evidence in favor of market efficiency does not include

A) random-walk behavior.

B) technical analysis.

C) performance of investment analysts and mutual funds.

D) January effect.

E) stock prices will reflect all publicly available information.