Unformatted text preview: places more emphasis on market risk
B. minimizes the importance of diversification
C. recognizes multiple nonsystematic risk factors
D. recognizes multiple systematic risk factors
E. None of the above 2. The efficient market hypothesis ____________.
A. implies that security prices properly reflect information available to investors
B. has little empirical validity
C. implies that active traders will find it difficult to outperform a buy-and-hold strategy
D. B and C
E. A and C 3. If you believe in the _______ form of the EMH, you believe that stock prices reflect all information that
can be derived by examining market trading data such as the history of past stock prices, trading volume
or short interest, and thus would see little value in performing _______ analysis.
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This note was uploaded on 03/17/2013 for the course FINANCE 510 taught by Professor Johngreenhut during the Fall '11 term at Texas A&M University–Commerce.
- Fall '11