please answer fast correctly The Fama and French evidence that high book-to-market firms outperform low book-to-market firms even after adjusting for beta means that ________.     high book-to-market firms have more post-earnings drift     high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a unique risk factor     low book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor     either high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor

Which of the following statements is incorrect? Select one: A. It is possible for markets to be efficient with respect to some information and inefficient with respect to other information B. It is possible for some markets to be more efficient than others C. The market is likely to be more efficient with respect to companies where there is greater analyst following D. The market is totally efficient with respect to companies providing regular dividends to investors

Which of the following variables do Fama and French claim do a better job explaining stock returns than beta? 1. Book-to-market ratio, II. Unexpected change in industrial production, III. Firm size O a. I and II only Ob. I and Ill only OC. I, II, and III O d. I only Not yet answered

The weak form of the efficient market hypothesis implies that: CHOOSE ONE   A. Investors can achieve abnormal returns, on average, using technical analysis, after adjusting for transaction costs and taxes. B. Insiders, such as specialists and corporate board members, cannot achieve abnormal returns on average. C. No one can achieve abnormal returns using market information. D. NONE OF THE ABOVE

Which of the following statements about the Efficient Market Hypothesis (EMH) is incorrect? Group of answer choices a)If the market is strong-form efficient, investors can not earn abnormal returns using inside information. b) If the investment in small firms earns a positive abnormal return, the stock market is not semi-strong form efficient. c) If a market is efficient, investors tend to follow a passive investment strategy. d) If the future stock price change depends on its history, the market is not weak-form efficient. e) If a market is weak-form efficient, fundamental analysis can not earn a positive abnormal return.

One concern when screening for stocks with low price-to-earnings ratios is that companies with low P/Es may be fi nancially weak. What criterion might an analyst include toavoid inadvertently selecting weak companies?A . Net income less than zeroB . Debt-to-total assets ratio below a certain cutoff pointC . Current-year sales growth lower than prior-year sales growth

The CR4 concentration index is: O (a) a measure of the concentration in the market which also conveys information about the average profits in the market O (b) only a measure of the concentration in the market and it does not convey any information about the average profits in the market O (c) a measure of the concentration in the market which also conveys information about the average profits in the market only if firms compete à la Bertrand O (d) a measure of the concentration in the market which also conveys information about the average profits in the market only if firms compete à la Cournot

The efficient markets hypothesis identifies three forms of market efficiency. (a) You observed that high-level managers make superior returns on investments in their company’s stock. Would this be a violation of weak-form market efficiency? Would it be a violation of strong-form market efficiency?            (b) If the weak form of the efficient market hypothesis is valid, must the strong form also hold? Conversely, does strong form efficiency imply weak form efficiency? (c) Stock XYZ, which traded for several months at a price of K72, and then declines to K65. if the stock eventually begins to increase in price, K72 is considered a resistance level because investors who bought originally at K72 will be eager to sell their shares as soon as they can break even on their investment. If everyone in the market believes in resistance levels, why do these beliefs not become self-fulfilling prophecies?

Assume all firms have the same expected dividends. If they have different expected returns, how will their market values and expected returns be related? What about the relation between their dividend yields and expected returns? (Select the best choice below.) O A. Firms with high expected returns will have high market values and low dividend yields. O B. Firms with low expected returns will have low market values and low dividend yields. O C. Firms with low expected returns will have high market values and low dividend yields. O D. Firms with high expected returns will have high market values and high dividend yields.

The pricing efficiency of financial markets can be expected to decrease if the cost of skillful financial analysis increases.  True  False