Quiz Ch 13 – Implications of Efficient Markets for Investors
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What is a significant implication of the efficient markets hypothesis for the majority of investors?
What is a significant implication of the efficient markets hypothesis for the majority of investors?
What does strong-form market efficiency imply about investor capabilities and market performance?
What are the implications of the statement that stock prices follow a random walk?
Which statement/s aligns with the strong-form efficient market hypothesis?
What conclusions can be drawn if the weak form of market efficiency is valid?
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?