practice_exam3 - Finance 367 Spring 2008 Exam 3(Practice...

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Finance 367 Spring 2008 Exam 3 (Practice) Your Name _______________________, ________________________ Last First Your Student ID number ___________________________ Notes: 1, The total is 25 points. 2, Problems 1 through 16 are multiple choices. Each correct answer gives you 1 point. 2, For Short Essay and Calculation problems, you need to write down the details/all the steps in arriving at your answers as clearly as possible.
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1. Stocks A, B, C and D have betas of 1.5, 0.4, 0.9 and 1.7 respectively. What is the beta of an equally weighted portfolio of A, B and C? ___________ A) .25 B) .93 C) 1.00 D) 1.13 2. The strong form EMH states that ________ must be reflected in the stock price. A) all market trading data B) all publicly available information C) all information including inside information D) none of the above 3. According to the semi-strong form of the efficient markets hypothesis ____________. A) stock prices do not rapidly adjust to new information B) future changes in stock prices cannot be predicted from any information that is publicly available C) corporate insiders should have no better investment performance than other investors D) none of the above is correct 4. Evidence suggests that there may be _______ momentum and ________ reversal patterns in stock price behavior. A) short-run, short-run B) long-run, long-run C) long-run, short-run D) short-run, long run 5. Which of following would violate the efficient market hypothesis? _________ A) A successful firm like Intel has consistently generated large profits for years. B) Prices for stocks before stock splits show on average consistently positive
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This note was uploaded on 05/10/2008 for the course FIN 367 taught by Professor Han during the Spring '08 term at University of Texas.

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practice_exam3 - Finance 367 Spring 2008 Exam 3(Practice...

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