BusFin.wk8.quiz - The strong form of the efficient market...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
The strong form of the efficient market hypothesis states that Question 1 options: A) past price data is positivel correlated to future prices. B) prices reflect all public information. C) all information both public and private is immediately reflected in stock prices. D) none of these Save Question 2 (1 point) The efficient market hypothesis deals primarily with Question 2 options: A) random speculation in securities. B) the degree to which prices adjust to new information. C) degrees to which price movements are the result of past trends. D) how an investor can significantly outperform the market in genera. Save Question 3 (1 point) Corporations prefer bonds over preferred stock for financing their operations because Question 3 options: A) preferred stocks require a dividend B) bond interest rates change with the economy while stock dividends remain constant C) the after-tax cost of debt is less than the cost of preferred stock. D) none of these. Save Question 4 (1 point)
Background image of page 1

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

View Full DocumentRight Arrow Icon
The efficient market hypothesis has several forms. The weak form states that Question 4 options: A) last price data is unrelated to future prices. B) prices reflect all public information. C) all information both public and private is immediately reflected in stock prices. D) none of these Save Question 5 (1 point) The semi-strong form of the efficient market hypothesis states that Question 5 options: A) past price data is unrelated to future prices. B) prices reflect all public information. C) all information both public and private is immediately reflected in stock prices. D) none of these. Save Question 6 (1 point) All of the following are advantages of going public except Question 6 options: A) more funds are available to publicly-traded firms. B) the fact that a company is public helps in bank negotiations and marketing. C) publicly-traded stocks afford the stockholders more liquidity. D) the firm disseminates more information to the public on corporate affairs. Save Question 7 (1 point)
Background image of page 2
All of the following are disadvantages of going public except Question 7 options: A) the firm may now become active in mergers and acquisitions. B) the company must make all information available to the public through filings to the SEC and the state. C) an erosion of value may take place after the initial offering. D) there is a high cost associated with going public. Save Question 8 (1 point) In issuing stock, the term "spread" refers to Question 8 options: A) the profit the managing investment banker gets for an issue of stock. B) the disparity between the initial asking price and the average price for the stock issued some months later. C) the difference between what the corporation gets for new issues of stock and what the public pays for the stock. D)
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/15/2011 for the course FINC 350-A taught by Professor Mason during the Spring '09 term at Columbia College.

Page1 / 15

BusFin.wk8.quiz - The strong form of the efficient market...

This preview shows document pages 1 - 4. Sign up to view the full document.

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