Quiz Ch 13 – T/F Distinctness of Behavioral Finance and Technical Analysis
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Behavioral finance and technical analysis are fundamentally similar theories.
True or false: Behavioral finance and technical analysis are fundamentally similar theories.
True or false: In a fully efficient capital market, there are no positive Net Present Value (NPV) outcomes in security transactions, whether buying or selling at the prevailing market price.
True or false: Investors tend to favor self-reliance, avoiding payment for services they can perform equally well independently within an efficient market.
True or false: Corporate financing decisions usually entail greater difficulty in reversal compared to investment choices.
True or false: Most research indicates that historical stock movements can forecast future asset prices.
True or false: Anomalies or “puzzles” are the accumulations of evidence challenging market efficiency.
True or false: The movement of security prices is characterized by a random walk in a perfectly competitive market.
True or false: In the scenario of stock returns displaying a random walk pattern, the computation of the autocorrelation coefficient between daily returns is anticipated to result in statistical insignificance.
True or false: Technical analysis is considered valuable within the framework of weak-form efficient market theory.
True or false: If stock returns exhibit a random walk pattern, understanding the history of stock returns proves ineffective for forecasting future stock returns.