11 - 1INCORRECT Ifyoubelieveinthe_formoftheEMH, , insiders...

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1 INCORRECT If you believe in the ________ form of the EMH, you believe that stock prices  reflect all relevant information including historical stock prices and current  public information about the firm, but not information that is available only to  insiders. A) semistrong B) strong C) weak D) A, B, and C E) none of the above Feedback: If you believe in the semistrong form of the EMH, you believe that stock prices reflect all relevant information including  historical stock prices and current public information about the firm, but not information that is available only to insiders. 2 INCORRECT Proponents of the EMH typically advocate A) an active trading strategy. B) investing in an index fund. C) a passive investment strategy. D) A and B E) B and C Feedback: Proponents of the EMH typically advocate a passive investment strategy and an easy way to implement his strategy is by investing in  an index fund. 3 INCORRECT __________ focus more on past price movements of a firm's stock than on the  underlying determinants of future profitability. A)
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This note was uploaded on 03/06/2012 for the course FINANCE 5700 taught by Professor Bob during the Spring '12 term at websteruniv.edu.

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11 - 1INCORRECT Ifyoubelieveinthe_formoftheEMH, , insiders...

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