Investment Selection. Given that eGain Commumicatios was up by 412 percent for 2011, why didnt all investors hold eGain Communications?

Investment Selection. Given that first Solar was down by 74 percent for 2011, why did some investors hold the stock? Why didnt the cell out before the price declined so sharply?

Risk and Return. We have seen thatover long periods of time, stock investments have tended to substantially outperform bond investments. However, it is not al all uncommon to observe investors with long horizons holding entirely bonds. Are such investors irrational?

Market Efficiency Implications. Explain why a characteristic of an efficient market is that investments in that market have zero NPVs.

Efficient Markets Hypothesis. A stock market analysis is able to identify misprices stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the market?

Semistrong Efficiency. If a market is semistrong from efficient, it is also weak from efficient? Explain.

Efficient markets Hypothesis. What are the implicationsof the efficient markets hypothesis for investors who buy and sell stocks in an attempt to "beat the market"?

Stocks versus Gambling. Critically evaluate the following statement: Playing the stock marketis like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.

Efficient Markets Hypothesis. There are sevaeral celebrated investors and stock pickers frequently mentioned in the financial press who have recorded huge returns on their investments over the past two decades. Is this success of these particular investors an invalidation of the EMH? Expain.

Efficient Markets Hypothesis. For each of the following scenarios, discuss wheather profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak from efficient, (2) the market is weakform but not seistrong from efficient, (3) The market is semistrongform but not strong from effecient, and (4) The market is strong from effecient.

a. The stock price has risen steadily each day for the past 30 days

b. The finacial statements for a company were released three days ago, and you believe youve uncovered some anomalies in the company's inventory and cost reporting techniques that are causing the firm's true liquidity strength to be understood.

c. You observe that the senior management of a company has been buying a lot of the company's stock on the open market over the past week.