3 pts Question 7 When a financial market reflects all the available information in the prices of the securities the market is referred to as a(n): efficient capital market normal distribution delayed reaction market. primary market current yield market. 3 pts Question 8 The hypothesis that supports the argument that any pricing inefficiencies are rare and relatively small is known as the hypothesis. pricing net present value market turnover efficient market capital market Question 9 3 pts the expected rate of return and the the The higher the standard deviation of a security, the risk. higher; lower lower; lower more constant; more constant higher; higher lower; higher 3 pts Question 10 If the securities markets are only weak form efficient, then the price of a stock will: react to new information over a couple of weeks. react slowly to new information concerning the future outlook of the firm. be based solely on historical information tend to overreact to new information concerning the future plans of the firm. totally reflect the true value of the frm