Quiz Ch 13 – Key Lessons in Market Efficiency
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which lessons of market efficiency are highlighted?
Which lessons of market efficiency are highlighted?
Which market efficiency hypothesis would be violated if a lawyer, working for a firm advising corporations on antitrust lawsuits, discovers a profitable strategy of short-selling stocks of firms about to be sued?
How do researchers primarily assess the semistrong form of the efficient-market hypothesis?
How do predictable cycles in stock price movements behave?
Do past stock returns assist in predicting future returns under weak-form efficiency?
What type of information does the semistrong form of efficiency primarily question for economic effectiveness?
What characteristics are associated with semistrong form efficiency?
What pattern typically emerges in a scatter plot chart comparing stock returns against past stock returns for most stocks?
True or false: Behavioral finance examines the concept that ingrained biases and misconceptions in individual investors can cause prices to diverge from fair values.
True or false: The acquisition of information is regarded as costless in an efficient market.