INVESTMENTS EXAM PRACTIVE QUESTIONS WITH CORRECT ANSWERS 2025

INVESTMENTS EXAM PRACTIVE
QUESTIONS WITH CORRECT ANSWERS
2025
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b)ItZimpliesZthatZpricesZreflectZallZavailableZinformation.

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d)ItZimpliesZthatZpricesZdoZnotZfluctuate.Z-ZcorrectZanswer-b)ThisZisZtheZdefinitionZofZanZefficientZmarket.



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6.ZSupposeZhousingZpricesZacrossZtheZworldZdouble.

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change?Z-ZcorrectZanswer-
FutureZhomeownersZasZaZwholeZareZworseZoff,ZsinceZmortgageZliabilitiesZhaveZalsoZincreased.ZInZaddition,Zt
hisZhousingZpriceZbubbleZwillZeventuallyZburstZandZsocietyZasZaZwholeZ(andZmostZlikelyZtaxpayers)ZwillZendu
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TreasuryZbillsZbyZaboutZ8%ZsinceZ1926.ZWhy,Zthen,ZdoesZanyoneZinvestZinZTreasuryZbills?Z-ZcorrectZanswer-
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abilityZofZinvestmentZperformanceZandZportfolioZvalue.



1.ZIfZmarketsZareZefficient,ZwhatZshouldZbeZtheZcorrelationZcoefficientZbetweenZstockZreturnsZforZtwo

nonoverlappingZtimeZperiods?Z-ZcorrectZanswer-
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erZperiodsZandZmakeZabnormalZprofits.