Questions from General Investment

Q: In the mid- to late-1990s, the performance of

In the mid- to late-1990s, the performance of the pros was unusually poor—on the order of 90 percent of all equity mutual funds underperformed a passively managed index fund. How does this bear on the...

Q: A hundred years ago or so, companies did not compile annual

A hundred years ago or so, companies did not compile annual reports. Even if you owned stock in a particular company, you were unlikely to be allowed to see the balance sheet and income statement for...

Q: Based on the information in the case, which one of the

Based on the information in the case, which one of the following portfolios should the Analees choose? a. Portfolio A b. Portfolio B c. Portfolio C

Q: You invest $10,000 in the market at the beginning

You invest $10,000 in the market at the beginning of the year, and by the end of the year your account is worth $15,000. During the year the market return was 10 percent. Does this mean that the marke...

Q: Which of the following statements are true about the efficient markets hypothesis

Which of the following statements are true about the efficient markets hypothesis? a. It implies perfect forecasting ability. b. It implies that prices reflect all available information. c. It implies...

Q: A frequent argument against the usefulness of technical analysis is that trading

A frequent argument against the usefulness of technical analysis is that trading on a pattern has the effect of destroying the pattern. Explain what this means.

Q: Gaps are another technical analysis tool used in conjunction with open high

Gaps are another technical analysis tool used in conjunction with open high-low-close charts. A gap occurs when either the low price for a particular day is higher than the high price from the previou...

Q: How do prospect theory and the concept of a rational investor differ

How do prospect theory and the concept of a rational investor differ?

Q: How can frame dependence lead to irrational investment decisions?

How can frame dependence lead to irrational investment decisions?

Q: What is noise trader risk? How can noise trader risk lead

What is noise trader risk? How can noise trader risk lead to market inefficiencies?