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- The underlying assumptions of technical analysis are that A.price move in predictable patterns B. Market value is determined by market news C. Investors are rationalWhich of the following is not related to overall market variability. I am not satisfy give downvote A•Financial risk B•Interest rate risk C•Purchasing power risk D•Market riskDefine weak form of market efficiency
- What is weak-form EMH? What would you expect to see/not see if markets where weak form efficient? In other words, can you think of market events that would serve as evidence that market is or isn’t weak-form efficient?Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on? (b) With regard to market efficiency, what is meant by the term "anomaly"? Give two examples of market anomalies and explain why each is considered as an anomaly.Why the following effects are considered efficient market anomalies? Are there rational explanation for any of them? a. P/E effect b. Book-to-market effect c. Momentum effect. d. Small firm effect
- Why are the following “effects” considered efficient market anomalies? Are there rational explanations for any of these effects?a. P/E effect.b. Book-to-market effect.c. Momentum effect.d. Small-firm effect.The weak form of the efficient market hypothesis states that _______? Group of answer choices successive price changes are dependent. successive price changes are independent. successive price changes depend on trading volume. successive price changes are biased. properly specified trading rules are of value.If the market is efficient with respect to one information set i.e. either weak, semi-strong or strong form, does this necessarily imply that the market is inefficient with respect to the other two information sets? Explain.
- Which of the following statements are true and which are false? I: Externalities are the only reason for market failure. II: The impact of a negative externality is accounted for by the market price. Both I and Il are false. Ol is true, Il is false. Ol is false, |l is true. Both I and Il are true.Which of the following change in regulations is most likely to improve internal market efficiency and thereby overall market efficiency? Reducing margin requirements on short selling. Raising margin requirements on short selling. Raising margin requirements on margin purchases. Reducing trading hours. Increasing margin interest rates.The pricing efficiency of financial markets can be expected to decrease if the cost of skillful financial analysis increases. True False
