Which one of the following factors makes it difficult for financial analysts to use trend analysis? Multiple Choice Decreasing costs and prices. Deflation. An aging asset base. A relatively new asset base.

Do you think investors can earn abnormal returns in financial markets that are at least semi strong-form efficient?

One approach for using multifactor models is to use factors that capture systematic risk. Which of the following is not a common factor used in this approach? Market capitalization O Unexpected changes in real GDP O Unexpected changes in inflation Yield curve shifts Consumer confidence

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

Behavioural finance is arguably most useful in explaining asset prices when there are significant numbers of “noise traders” and limits to arbitrage. Why is this so?

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.