EMH - Question 1 0.1 out of 0.1 points _ focus more on past...

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Question 1 0.1 out of 0.1 points __________ focus more on past price movements of a firm's stock than on the underlying fundamentals of future profitability. Answer Selected Answer: Correct Answer: Question 2 0.1 out of 0.1 points Basu (1977, 1983) found that firms with low P/E ratios Answer Selected Answer: P/E ratios. Correct Answer: P/E ratios. Question 3 0.1 out of 0.1 points 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
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firm, but not information that is available only to insiders. Answer Selected Answer: Correct Answer: Question 4 0.1 out of 0.1 points Which of the following are used by fundamental analysts to determine the fair value of a stock? I) moving averages II) earnings III) dividend prospects IV) interest rates Answer Selected Answer: Correct Answer: Question 5 0 out of 0.1 points Studies of negative earnings surprises have shown that there is Answer Selected Answer: a negative drift in the stock price on the days following the negative earnings surprise announcement. Correct Answer: both A and C are true. Response The market appears to adjust to earnings information
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Feedback: gradually, resulting in a sustained period of abnormal returns. Question 6 0.1 out of 0.1 points The weak form of the efficient market hypothesis asserts that Answer Selected Answer: Correct Answer: Question 7 0 out of 0.1 points The Food and Drug Administration (FDA) just announced yesterday that they would approve a new cancer- fighting drug from GlaxoSmithKlin e. You observe that GlaxoSmithKlin e had an abnormal return of 0% yesterday. This suggests that Answer Selected Answer:
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Correct Answer: Response Feedback: Question 8 0.1 out of 0.1 points The weather report says that a devastating flood is expected in Queensland this weekend, during the peak of the citrus harvest. In an efficient market one would expect Queensland Orange’s share price to Answer Selected Answer: Correct Answer: Question 9 0.1 out of 0.1 points Cumulative abnormal returns (CAR) Answer Selected Answer: Correct Answer: Question 10
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0.1 out of 0.1 points If you believe in the _______ form of the EMH, you believe that stock prices reflect all
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This note was uploaded on 03/26/2012 for the course FINS 2624 taught by Professor Hneryyip during the Three '10 term at University of New South Wales.

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EMH - Question 1 0.1 out of 0.1 points _ focus more on past...

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