ch8(6e) sample

ch8(6e) sample - ch8(6e sample 1 considerations make...

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ch8(6e) sample 1. _________ considerations make portfolio management useful even in a perfectly efficient market. A. Diversification B. Investor tax C. Investor risk profile D. all of the above 2. When the market risk premium rises, stock prices will ________. A. rise B. fall C. recover D. have excess volatility 3. 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 4. Proponents of the EMH typically advocate __________. A. a conservative investment strategy B. a liberal investment strategy C. a passive investment strategy D. an aggressive investment strategy
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5. A chartist is likely to believe in the value of doing __________. A. fundamental analysis B. technical analysis C. both a and b D. neither a nor b 6. Which of the following is not a method employed by followers of fundamental analysis? A. analysis of interest rates and other macroeconomic factors B. relative strength analysis C. earnings forecasting D. All of the above are methods employed by fundamental analysts 7. If you believe in the __________ form of the EMH, you believe that stock prices reflect all publicly available information but not information that is available only to insiders. A. semi-strong
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This note was uploaded on 07/26/2011 for the course FIN 4133 taught by Professor Hearth during the Spring '11 term at Arkansas.

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ch8(6e) sample - ch8(6e sample 1 considerations make...

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