3.a

b.

c.

d.

Which of the following statement is wrong? Semi-strong form of market efficiency assumes that prices reflect all publicly available information. If you use the past pattern of prices to predict future prices, you believe that prices follow a random walk. Behavioral finance believes that investors are not always rational. The market is not strong-form efficient None of the above. A bond was issued with a 10 year maturity, a $1000 Face Value, 10% coupon rate paid semi-annually, and a 11% YTM. After five years the YTM for the bond has become 12%, what is the price of the bond now? $926.40 $927.90 $940.25 $962.31 None of the above. Which one of the following would provide the best indication that a portfolio is being effectively diversified? An increase in the portfolio beta O A decrease in the portfolio beta An increase in the portfolio rate of return A decrease in the portfolio standard deviation None of the above. The payback method: is the amount of time it takes for a project to recoup its profits. is the best method for evaluating complex projects. fails to explicitly consider the time value of money. is never used by businesses today, None of the above