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Michael believes that some market participants knew of several publicly avail- able short-selling transactions in advance and profit from these events. If Michael is right,

Michael believes that some market participants knew of several publicly avail- able short-selling transactions in advance and profit from these events. If Michael is right, it is evidence for the efficient market hypothesis. A. weak form B. semi-strong form C. both weak and semi-strong forms D. any versions of

Which of the following statements is correct? A. If interest rates increase, the market prices of bonds increase B. When the yield to maturity is below the coupon rate on a bond, the bond would trade at a discount to par. C. When the yield to maturity is below the coupon rate on a bond, the bond would trade at a premium to par. D. When the coupon rate is equal to the yield, the bond trades at a discount to par.

Consider the following bonds, which all have a yield to maturity of 5% p.a. and a face value of $1,000. Which bonds value has the lowest sensitivity to interest rate changes (interest rate risk)? A. Bond A: 10-year zero coupon bond B. Bond B: 10-year bond with 5% annual coupons

C. Bond C: 2-year zero coupon bond D. Bond D: 2-year bond with 5% annual coupons Which of the following are aspects of mutually exclusive projects? A. Their cash flows are related. B. Their cash flows are unrelated. C. Selecting one would automatically eliminate selecting the other. D. Selecting one is dependent on accepting the other also. Which of the following is NOT an advantage for firms to go public? A. Requirement to disclose financial, accounting, tax, and other business information. B. There exists an active secondary market for share trading after the IPO. C. Further capital can be raised through subsequent open offers. D. Larger capital can be raised from public

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