Which of the following is TRUE about the strong form of market efficiency?     Insider information cannot help investors to outperform the market     This form of efficiency suggests that all public information is already reflected in current prices     Fundamental analysis can be used to identify mispriced securities     Technical analysis can be used to identify mispriced securities

Which of the following statements is/are true? Multiple statements may be true A bank borrowing from the central bank signals confidence to other market participants The risk of fire sale is decreasing in the underlying item's illiquidity Liquidity risk can be addressed using off-balance sheet items Liquidity risk can originate from off-balance sheet items

Which of the following is NOT correct with respect to the Efficient Market Hypothesis? If markets are semi-strong form efficient, then fundamental analysts would not be able to earn abnormally good returns, after considering the risk they assume. O Semi-strong form efficiency says that if a company announces a labor strike, the stock price very quickly adjusts downward. Evidence suggests that markets are NOT strong form efficient, since insiders could make abnormally good returns trading on private information. However, that is illegal. () Semi-strong form efficiency says that when Stryker makes an earning announcement, the stock price quickly reflects the new information. )Weak form efficiency says that technical analysts who study charts of stock prices and volumes can regularly make abnormally good returns, after considering the risk the assume. Page 24 of 30

Recession, inflation, and high interest rates are economic events that are best characterized as being a. company-specific risk factors that can be diversified away. b. among the factors that are responsible for market risk. c. risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers. d. irrelevant except to governmental authorities like the Federal Reserve. e. systematic risk factors that can be diversified away.