The security is said to be undervalued if the market price is ____ its intrinsic value.

Group of answer choices

a) less than.

b) equal to.

c) higher than.

d) none of the above.

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Question 90.2 pts

A bond which has a yield to maturity greater than its coupon interest will sell for a price:

Group of answer choices

a) At par.

b) At premium.

c) At discount.

d) None of the above.

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Question 100.2 pts

_______ is the price at which the dealer offers to buy.

Group of answer choices

a) Bid price.

b) Ask price.

c) Value.

d) Intrinsic Value.

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Question 110.2 pts

Based on the past information only, _____ form market efficiency states that no investor will earn a higher abnormal return than the market on average.

Group of answer choices

a) weak.

b) semi-strong.

c) strong

d) super.

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Question 120.2 pts

_____ yield curve is formed when the short-term interest rate is greater than the long-term interest rate.

Group of answer choices

a) Normal.

b) Inverted.

c) Flat.

d) Humped.

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Question 130.2 pts

_____ bond allow the holders to exchange it to the stated number of common stocks.

Group of answer choices

a) Callable.

b) Putable.

c) Convertible.

d) Straight.

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Question 140.2 pts

An efficient market requires

Group of answer choices

a) a large number of profit-maximizing participants analyze and value securities independently.

b) new information regarding securities comes to the market in a random fashion.

c) profit-maximizing investors adjust security prices rapidly to reflect the effect of new information.

d) all of the above.