1|Page
TEST BANK for Investments 13th Edition.
By Zvi Bodie, Alex Kane, Alan Marcus
Which s
would NOT preclude charting as a method of portfolio management
,2|Page
A. The market is strong-form efficient.
B. The market is semistrong-form efficient
C. The market is weak-form efficient
D. Stock prices follow recurring patterns
In a 1953 study of stock prices, Maurice Kendall found that ________.
A. there were no predictable patterns in stock prices
B. stock prices exhibited strong serial autocorrelation
C. day-to-day stock prices followed consistent trends
D. fundamental analysis could be used to generate abnormal returns
The weak form of the EMH states that ________ must be reflected in the current stock
price.
A. all past information, including security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
The semistrong form of the EMH states that ________ must be reflected in the current
stock price.
,3|Page
A. all security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
The strong form of the EMH states that ________ must be reflected in the current stock
price.
A. all security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
Random price movements indicate ________.
A. irrational markets
B. that prices cannot equal fundamental values
C. that technical analysis to uncover trends can be quite useful
, 4|Page
D. that markets are functioning efficiently
When the market risk premium rises, stock prices will ________.
A. rise
B. fall
C. recover
D. have excess volatility
The small-firm-in-January effect is strongest ________.
A. early in the month
B. in the middle of the month
C. late in the month
D. in even-numbered years
Evidence suggests that there may be _______ momentum and ________ reversal patterns in
stock price behavior.
TEST BANK for Investments 13th Edition.
By Zvi Bodie, Alex Kane, Alan Marcus
Which s
would NOT preclude charting as a method of portfolio management
,2|Page
A. The market is strong-form efficient.
B. The market is semistrong-form efficient
C. The market is weak-form efficient
D. Stock prices follow recurring patterns
In a 1953 study of stock prices, Maurice Kendall found that ________.
A. there were no predictable patterns in stock prices
B. stock prices exhibited strong serial autocorrelation
C. day-to-day stock prices followed consistent trends
D. fundamental analysis could be used to generate abnormal returns
The weak form of the EMH states that ________ must be reflected in the current stock
price.
A. all past information, including security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
The semistrong form of the EMH states that ________ must be reflected in the current
stock price.
,3|Page
A. all security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
The strong form of the EMH states that ________ must be reflected in the current stock
price.
A. all security price and volume data
B. all publicly available information
C. all information, including inside information
D. all costless information
Random price movements indicate ________.
A. irrational markets
B. that prices cannot equal fundamental values
C. that technical analysis to uncover trends can be quite useful
, 4|Page
D. that markets are functioning efficiently
When the market risk premium rises, stock prices will ________.
A. rise
B. fall
C. recover
D. have excess volatility
The small-firm-in-January effect is strongest ________.
A. early in the month
B. in the middle of the month
C. late in the month
D. in even-numbered years
Evidence suggests that there may be _______ momentum and ________ reversal patterns in
stock price behavior.
