Which of the following limits the market from becoming a fully efficient market? New information takes time to process. Obtaining new information is costly. The existence of closed end investment companies. Both a. and b. are correct. All of the above answers are correct. None of the above answers is correct.

An efficient market is one in which no one can profit from having a better information than the rest. Is the statement true or false or uncertain

If the security market is efficient in the strong form, then _____. Group of answer choices a. it is impossible to consistently outperform the market by using technical analysis, which tries to find security mispricing by analyzing historical security price data b. it is impossible to consistently outperform the market by using fundamental analysis, which tries to find security mispricing by analyzing non-price public information c. it is impossible to consistently outperform the market by using inside information d. it is impossible to consistently outperform the market by using technical analysis, fundamental analysis or inside information

4. Which of the following statements about market efficiency is/are true? (a) If a market is weak-form efficient, it is automatically also semi-strong form efficient. (b) If a market is weak-form efficient, fundamental analysis is a waste of time. (c) If a market is weak-form efficient, technical analysis is a waste of time. O (a) only. (b) only. (c) only. (a) and (b) only. (b) and (c) only. O (a) and (c) only.

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

Efficient Markets Hypothesis imply that investment strategies purely based on publicly available information cannot systematically generate positive abnormal returns. This statement is O True O False

Company X is more exposed to market risk than Company Y. Company X can compensate for this by using less financial leverage. As a consequence, the uncertainty of both firms' anticipated EBITS could be similar. * Correct O Wrong

Which of the following arguments supports the view that regulation is not necessary, particularly to the extent that it currently exists? Select one: a. Markets for information are not efficient and therefore produce a sub-optimum amount of information, given the problem of 'free riders'. b. Accounting information is like any other good, and people will be prepared to pay for it to the extent that it has a use. c. Investors need protection from fraudulent organisations that may produce misleading information. d. Information asymmetry exists because not everyone has the same power over resources to obtain the information they need.

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.

All of the following statements about an efficient market are correct EXCEPT: a. All financial transactions have an NPV of equal to zero b. A skilled individual may have sustainable above market returns c. The investor is compensated properly for risk borne d. The investor does not receive abnormal returns consistently