Questions from General Investment


Q: Referring to Questions 5 and 6, under what circumstances might a

Referring to Questions 5 and 6, under what circumstances might a company choose not to pay dividends? Data from Questions 5: Why does the value of a share of stock depend on dividends? Data from Qu...

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Q: A stock market analyst is able to identify mispriced stocks by comparing

A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the m...

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Q: What are the implications of the efficient markets hypothesis for investors who

What are the implications of the efficient markets hypothesis for investors who buy and sell stocks in an attempt to “beat the market”?

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Q: If you were concerned about the liquidity of mutual fund shares that

If you were concerned about the liquidity of mutual fund shares that you held, would you rather hold shares in a closed-end fund or an open-end fund? Why?

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Q: Your broker commented that well-managed firms are better investments than

Your broker commented that well-managed firms are better investments than poorly managed firms. As evidence, your broker cited a recent study examining 100 small manufacturing firms that eight years e...

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Q: A famous economist just announced in The Wall Street Journal his findings

A famous economist just announced in The Wall Street Journal his findings that the recession is over and the economy is again entering an expansion. Assume market efficiency. Can you profit from inves...

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Q: Critically evaluate the following statement: “Playing the stock market is

Critically evaluate the following statement: “Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.”...

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Q: The efficient markets hypothesis implies that all mutual funds should obtain the

The efficient markets hypothesis implies that all mutual funds should obtain the same expected risk-adjusted returns. Therefore, we can simply pick mutual funds at random. Is this statement true or fa...

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Q: Assume that markets are efficient. During a trading day, American

Assume that markets are efficient. During a trading day, American Golf, Inc., announces that it has lost a contract for a large golfing project that, prior to the news, it was widely believed to have...

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Q: If a market is semi strong-form efficient, is it

If a market is semi strong-form efficient, is it also weak form efficient? Explain.

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