Questions from Corporate Finance

Q: Describe the various forms of EMH.

Describe the various forms of EMH.

Q: The manager of Quest Adventures Ltd. is puzzled. Analysts are

The manager of Quest Adventures Ltd. is puzzled. Analysts are saying that the future prospects for his company are poor because the stock price has dropped 5 percent. a. Explain to the manager the rel...

Q: Describe two common tests for the weak form and for the semi

Describe two common tests for the weak form and for the semi-strong form of the EMH.

Q: State the main assumptions required for the existence of efficient markets.

State the main assumptions required for the existence of efficient markets.

Q: What is the momentum effect? What form of the EMH does

What is the momentum effect? What form of the EMH does it contradict?

Q: Using the following information, calculate the expected return and standard deviation

Using the following information, calculate the expected return and standard deviation of a portfolio with 50 percent in ABC and 50 percent in DEF. Then calculate the expected return and standard devia...

Q: Elvira, the CEO of AT Pharmaceutical Ltd., has hired Dome

Elvira, the CEO of AT Pharmaceutical Ltd., has hired Dome Financial Inc. to advise her on issuing new stock. Her company will need to issue more stock soon to finance the development of a new product—...

Q: You are on the board of directors of Marlin Company. The

You are on the board of directors of Marlin Company. The stock price of Marlin has suddenly increased by 20 percent, and the CEO has come to the board asking for a substantial pay increase. The CEO ar...

Q: On Monday, the stock of Wicker Company was trading at $

On Monday, the stock of Wicker Company was trading at $25. The CEO was satisfied with this price as it reflected the prospects of the firm (future dividend growth and required rate of return). The fir...

Q: Assume that the information system is so advanced that the market,

Assume that the information system is so advanced that the market, as confirmed by numerous unbiased studies, is efficient. Investment firms therefore decide to retire all portfolio managers and finan...