"Foreigh exchange rates,  like stock prices, follow a random walk."Is the statement true, false, or nucertain?.Explain your answer.

Suppose we observe from market data that, for a given non-dividend paying stock, F, ± Soer. What might explain the inequality in this relationship (i.e. why don't we observe Fo = Soe"T) if markets are efficient? Hint: try to identify real-world market frictions that might cause cases where Fo + Soe™" does not result in arbitrage opportunities

What does it mean to say “stock prices are nonstationary”?

2. Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not?

1. Which form of market efficiency is the best among weak, semi strong and strong? 2. Is stock market efficient? Give logic in favour of your answer

T/F. The “Fear Index” is calculated using estimates of implied volatility. Group of answer choices True False

Based on the results from Fama and French, does it matter for the Efficient Markets Hypothesis if value stocks are riskier than growth stocks, or if growth stocks are riskier than value stocks? Why or why not?

Describe precisely one way that you would test if a particular stock market is strong-form efficient.

If most participants in the stock market do not follow what is happening to monetary aggregates, prices of common stock will not fully reflect information about them. Is this statement true? Explain your answer

Suppose that a market exists where shares of stock trade on the floor of an exchange such as the the New York Stock Exchange (the NYSE). What do we call this type of market? An efficient market An auction market O A direct trading market A primary market O A dealer market