{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

key_quiz1_372_a

key_quiz1_372_a - AFM 372 Fall 2007 Quiz#1 Version A Sept...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
AFM 372 Fall 2007 Quiz #1 Version A , Sept. 27 Duration: 25 m Student name: _________________ Student number: ______________ I. Multiple choice questions: Circle one answer that is the best. (2 points each) 1. The Knot Knit Corporation needs to elect 9 directors. There are 120,000 shares outstanding. Under cumulative voting, at least how many shares would you need to own to guarantee that your favorite candidate is elected? A) 60,001 B) 60,000 C) 12,001 D) 12,000 E) 13,334 2. If the efficient market hypothesis holds investors should expect: A) to earn positive abnormal return. B) to receive a fair price for their securities. C) always be able to pick stocks that will outperform the market averages. D) Both a & b. E) Both b & c. II. Short answer question (3 points. Directly copying from notes may result in lower mark. Your answer must not exceed 4 sentences or it will result in loss of mark.) Is the following hypothetical “facts” a violation of the efficient market hypothesis? If inconsistent with market efficiency, which version of efficiency would be violated? Give your reason(s).
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern