Which one of the following is the interest rate that the largest commercial banks charge their most creditworthy corporate customers for short-term loans? A) Federal funds B) call money C) prime D) discount E) bid When stocks are held in an index in proportion to their total company market value, the index is: A) back-weighted. B) front-weighted. C) dollar-weighted. D) price-weighted. E) value-weighted. If you believe that stock market prices follow a random walk, then: (which form of market efficiency?) A) you also believe the market is strong-form efficient. B) studying past price movements will lead to excess profits. C) historical price information provides no benefit in predicting future prices. D) having inside information will not lead to excess profits. E) there is no financial benefit from investing in the stock market. Which one of the following is defined as the relationship between the interest rate on default-free, pure discount bonds and the time to maturity? A) Treasury yield curve B) market interest rate curve C) risk premium structure D) discount rate curve E) term structure of interest rates Which one of the following states that investors cannot consistently can positive excess returns? A) market return hypothesis B) efficient market hypothesis C) excess theory D) risk-return theory E) current market hypothesis