CAIA - Chapter 6 Questions and Answers 100% Correct

CAIA - Chapter 6 Questions and Answers 100% CorrectCAIA - Chapter 6 Questions and Answers 100% CorrectCAIA - Chapter 6 Questions and Answers 100% CorrectCAIA - Chapter 6 Questions and Answers 100% CorrectCAIA - Chapter 6 Questions and Answers 100% Correct Jane studies past prices and volume of trading in major public equities and establishes equity market neutral positions based on her forecasts of prices. Jane consistently outperforms market indices of comparable risk. Does Jane's investment strategy and performance indicate: - ANSWER-The underlying equity market is informationally inefficient at the weak level? • The underlying equity market is informationally inefficient at the semi-strong level, both, or neither? The underlying equity market is informationally inefficient at both the weak level and the semistrong level since any inefficiency at a "lower" level indicates inefficiency at a "higher" level because the underlying information sets are cumulative moving from weak to strong List two major factors that drive informational market efficiency through facilitating better investment analysis - ANSWER-Assets will also tend to trade at prices closer to their informationally efficient values when there is easier access to better information. • Assets will also tend to trade at prices closer to their informationally- efficient values