Most academic research supports markets as semi-strong efficient. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Informational efficiency has to do with the speed and accuracy of processing a buy or sell order at the best available price. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: OPERATIONAL efficiency has to do with the speed and accuracy of processing a buy or sell order at the […]
Date: September 19th, 2020
Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month and keeps all of the proceeds before investing it for you. If your advisor makes and keeps a 2% return on your investment, what is his EAR if the earnings […]
Date: September 19th, 2020
Describe the three forms of market efficiency. What will be an ideal response? ANSWER Answer: WEAK-FORM MARKET EFFICIENCY: In weak-form efficient markets, current prices reflect the price history and trading volume of the stock. It is of no use to chart historical stock prices to predict future stock prices such that you can […]
Date: September 19th, 2020
The NYSE uses a designated-order turnaround computer system (SuperDOT) that matches buyers and sellers so that trades can be executed within seconds, with buyers and sellers getting the best available price. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Most academic research supports markets as ________ efficient. A) weak-form B) semi-strong-form C) strong-form D) not at all ANSWER Answer: B
Date: September 19th, 2020
In weak-form efficient markets, current prices already reflect the price history and volume of the stock, as well as all available public information. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: In SEMI-STRONG-FORM efficient markets, current prices already reflect the price history and volume of the stock as well […]
Date: September 19th, 2020
You purchase $10,000 worth of supplies every 90 days and never take the trade discount of 2/10 net 30. How much could you save each (360-day) year if you took the discount? What will be an ideal response? ANSWER 2% × $10,000 = $200 4-90 day periods per year $200 × 4 = […]
Date: September 19th, 2020
Rose bought a share of stock for $64.50 that paid a dividend of $.50 and sold nine months later for $64.00. What was her dollar profit or loss and holding period return? A) $0.50, 0.78% B) -$0.50, -0.78% C) $0.00, 0.00% D) There is no correct solution to this question. ANSWER Answer: C […]
Date: September 19th, 2020
If the price of River Bank stock is $35, next year’s dividend is expected to be $2.50, and the required return is 15%, what is the expected dividend growth rate? A) 7.9% B) 5.2% C) 15.0% D) 12.0% E) 13.0% ANSWER A
Date: September 19th, 2020
