With respect to the notion that stock prices follow a random walk,
several researchers have concluded that:
Answer
Selected past stock price changes provide little useful
Answer: information about current stock prices.
Correct past stock price changes provide little useful
Answer: information about current stock prices.
Response Feedback: correct
Question 2
2 out of 2 points
A fundamental analyst:
Answer
Selected studies a firm's financial statements to
Answer: determine pricing inefficiencies.
Correct studies a firm's financial statements to
Answer: determine pricing inefficiencies.
, Response Feedback: correct
Question 3
2 out of 2 points
If The Wall Street Journal lists a stock's dividend as $1, then it is
most likely the case that the stock:
Answer
Selected pays $0.25 quarterly, or an estimated $1
Answer: annually.
Correct pays $0.25 quarterly, or an estimated $1
Answer: annually.
Response Feedback: correct
Question 4
2 out of 2 points
Which group of investors is capable of earning consistent, superior
profits if financial markets are strong-form efficient?
Answer
Selected No one will be capable of sustained, superior
Answer: profits.
Correct No one will be capable of sustained, superior
Answer: profits.
Response Feedback: correct
, Question 5
2 out of 2 points
A company reports significantly higher earnings on a Monday.
You purchase the stock on Tuesday and earn superior returns in
the absence of other new information. The market appears to be:
Answer
Selected Answer: weak-form efficient at the best.
Correct Answer: weak-form efficient at the best.
Response Feedback: correct
Question 6
2 out of 2 points
In a valuation of a non-constant dividend growth stock, the
terminal value represents the:
Answer
Selected present value of future dividends from that
Answer: point on.
Correct present value of future dividends from that
Answer: point on.
Response Feedback: correct
Question 7
2 out of 2 points
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