The market return on the canadian treasury bill is

This preview shows page 22 - 26 out of 221 pages.

72. The market return on the Canadian Treasury bill is generally used as the measure of the: A. Real rate of market return. B. Real rate of return on a risk-free investment. C. Nominal risk premium rate of return. D. Risk-free rate of return. E. Risk premium on government bonds.
73. The nominal rate of return on large-company stocks consists of a:
74. Which of the following are included in the market prices if the market is semi-strong efficient? I. All historical information II. All insider information III. All public information IV. All information of any kind
75. If the stock market is weak form efficient, then an investor can NOT earn excess profits by:
76. If a market is efficient, then the difference between the market value of an investment and its cost is: A. Zero . B. Positive and greater than 1. C. Equal to the risk premium. D. Equal to the net present value of the cash inflows. E. Equal to the risk-free rate of return.
77. Last year you purchased a stock at $21.63 a share. Today you sold your shares at $23.01 after receiving your quarterly dividend. The total return on this stock consists of:
78. Which one of the following has the highest risk premium based on historical information?
79. Historical information has shown that there is ______ relationship between the rate of return and the risk of an investment.
80. You are an investor who studies the price movements of stock to identify patterns that are repetitive. By doing this, you have been able to earn higher returns than normal. This would be a violation of: A. The risk-return tradeoff. B. The normal risk premium reward. C. Strong form efficiency. D. Semi-strong form efficiency. E. Weak form efficiency.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture