134A06Final

134A06Final - ECON 134A FINAL EXAMINATION TEST FORM A: KEY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 134A FINAL EXAMINATION TEST FORM A: KEY August 3, 2006 Please use your scantron to answer all the questions. Each question has only one most correct answer and is worth 5 pts. IMPORTANT: PLEASE INDICATE YOUR TEST FORM “ A ” ON YOUR SCANTRON. 1. The beta of a security provides an A. Estimate of the market risk premium. B. Estimate of the slope of the Capital Market Line. C. Estimate of the slope of the Security Market Line. D. Estimate of the systematic risk of the security E. None of the above. Answer: D. 2. The introduction of personal taxes may reveal a disadvantage to the use of debt if the A. Personal tax rate on the distribution of income to stockholders is less than the personal tax rate on interest income. B. Personal tax rate on the distribution of income to stockholders is greater than the personal tax rate on interest income. C. Personal tax rate on the distribution of income to stockholders is equal to the personal tax rate on interest income. D. Personal tax rate on interest income is zero. E. None of the above. Answer: A. 3. A lawyer works for a firm that advises corporate firms planning to sue other corporations for antitrust damages. He finds that he can "beat the market" by short-selling the stock of the firm that will be sued. This finding is a violation of the: A. weak form of the efficient market hypothesis. B. semi-strong form of the efficient market hypothesis. C. strong form of the efficient market hypothesis. D. All of the above. 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
E. None of the above. Answer: C 4. Which of the following is NOT true: A. If the weak form of efficient markets holds, then technical analysis is useless. B. Event studies attempt to measure whether there is a significant reaction to public announcements. C. In efficient markets, a stock's price should change with the arrival of new information. D. One should buy a stock if his prediction of the stock price is lower than the market. E. The fact that mutual fund managers cannot beat the market is an
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/22/2009 for the course ECON 134a taught by Professor Lim during the Spring '08 term at UCSB.

Page1 / 5

134A06Final - ECON 134A FINAL EXAMINATION TEST FORM A: KEY...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online