Questions from Financial Markets

Q: What are the differences among the weak, semi-strong,

What are the differences among the weak, semi-strong, and strong forms of the efficient market hypothesis?

Q: What type of market efficiency—none, weak, semi-

What type of market efficiency—none, weak, semi-strong, or strong—exists under each of the following statements? a) I know which stocks are going to rise in value by looking at their price changes ove...

Q: 1. Which of the following is the largest component of the

1. Which of the following is the largest component of the M1 money supply definition? a. Currency b. Traveler’s checks c. Demand deposits d. Other checkable deposits 2. The M2 definition of the...

Q: 1. What is the difference between the funds received by the

1. What is the difference between the funds received by the company from the underwriters and the value of the firm’s shares in the aftermarket known as? a. Spread b. Underpricing c. Flotation costs...

Q: Explain if you agree or disagree with this statement: “After

Explain if you agree or disagree with this statement: “After the merger announcement the stock price greatly increased. Then it fell for the next 1-2 days before becoming relatively stable. This is pr...

Q: How do mutual fund return data present evidence for or against efficient

How do mutual fund return data present evidence for or against efficient markets? Explain.

Q: Define what is meant by a portfolio and describe how the expected

Define what is meant by a portfolio and describe how the expected return on a portfolio is computed.

Q: Explain the terms diversification and correlation in the context of forming portfolios

Explain the terms diversification and correlation in the context of forming portfolios.

Q: Explain the fallacy of this statement: “I’d rather put my

Explain the fallacy of this statement: “I’d rather put my money into a single high earning asset than in a portfolio of diversified investments; I’ll earn more money with the single asset.”

Q: Describe what happens to portfolio risk as more and more assets are

Describe what happens to portfolio risk as more and more assets are added to a portfolio. Are there advantages to international diversification?