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Corporate Financial Management

Business

Quiz 14 :

Value-Based Management

Quiz 14 :

Value-Based Management

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Following the theory of the "efficient market hypothesis" all of the following are true EXCEPT
Free
Multiple Choice
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C

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In an efficient market, stock prices adjust quickly to new public information.
Free
True False
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True

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It has been found that the share values of firms whose shares are traded publicly in an efficient marketplace is
Free
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Answer:

B

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Which two of the following are implications of the efficient market hypothesis (EMH) for companies?
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Which three of the following accurately describe insider trading?
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Which of the following best describes 'strong- form efficiency'?
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Which three of the following are implications of the efficient market hypothesis (EMH) for companies?
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Which three of the following are benefits of an efficient market?
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Economically rational buyers and sellers use their assessment of an asset's risk and return to determine its value. Relative to this concept, which of the following is true?
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Which of the following best describes 'strong- form efficiency'?
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According to the efficient market theory,
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Which two options best describe how new information is incorporated into share prices in an efficient market?
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Which of the following best describes the term 'weak- form efficiency'?
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Efficient market hypothesis is the theory describing the behavior of an assumed "perfect" market in which securities are typically in equilibrium, security prices fully reflect all public information available and react swiftly to new information, and, because stocks are fairly priced, investors need not waste time looking for mispriced securities.
True False
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If the expected return is less than the required return, investors will sell the asset, because it is not expected to earn a return commensurate with its risk.
True False
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In an inefficient market, stock prices adjust quickly to new public information.
True False
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What is X in the formula X = Share price ? Earnings per share
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If expected return is less than required return on an asset, rational investors will
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Which of the following is an implication of the efficient market hypothesis (EMH) for investors?
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If the expected return is above the required return on an asset, rational investors will
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