{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Fall07-Solution-Exam20

Fall07-Solution-Exam20 - BUS 172A Investment Analysis Fall...

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

BUS 172A – Investment Analysis Fall 2007 Exam 2 Last Name: __________________________First Name: _____________________ Class Time: _________________________ Instructions: There are 12 questions . Questions 1–4 are multiple-choice questions. Questions 5–12 are problems for which computations are necessary or open questions. For each question you need to report the correct final answer in the space provided . For questions 5–12, in addition to reporting the final answer, you must also report the complete and correct solution with computations. When reporting the solutions to the questions 5-12 you must label all the amounts you use in the computations. Your computations and solutions to the questions must be clear and easy to understand. Grading: Each multiple-choice question is worth 5 points. No partial credit is granted for questions 1-4 . For the problems 5-12 you can only receive the maximum points allowed if you record the correct final answer along with the complete and correct solution for the problem. If you report the correct final answer, but you do not provide a complete and consistent solution for the problems, you will not receive any points. Partial credit is granted for questions 5–12 . 1

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

View Full Document
Section I – Multiple Choice Questions: 5 points each question 1. Assume that the market is semi-strong form efficient. The best investment strategy is to: a. Examine the past prices of a stock to determine the trend. b. Invest in an actively managed mutual fund whose manager searches for underpriced stocks. c. Invest in an index fund. d. Examine the financial statements for a company to find stocks that are not selling at intrinsic value. e. Invest in options and futures. ANSWER: ________ 2. Suppose that, after conducting an analysis of past stock prices, you come up with the following observations. Which could appear to contradict the weak form of the efficient market hypothesis?
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern