5-An analyst who relies on past cycles of stock pricing to make investment decisions is:

Assuming that market is not even weak-form efficient.

Performing fundamental analysis.

Relying on strong-form market efficiency.

Relying on the random walk of stock prices.

None of above.

6-How does a bond dealer generate profits when trading bonds?

By maintaining bid prices higher than ask prices

By maintaining bid prices lower than ask prices

By retaining the bonds next coupon payment

By lowering bonds coupon rate upon resale

None of above

7-A positive value for PVGO suggests that the firm has:

A positive return on equity

A positive plow back ratio

Investment opportunities with superior returns

A high rate of constant growth

None of above

8-Which of the following is least likely to contribute to going concern value?

Extra earning power

Intangible assets

Future investment opportunities

High liquidation value

None of above