Quiz Ch 08 – Passive Portfolio Management Strategy
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What characterizes a form of passive portfolio management?
What characterizes a form of passive portfolio management?
Do stock price behaviors exhibit patterns of __________ momentum and __________ reversal?
What is the primary responsibility of a portfolio manager for an investor committed to a passive investment approach in an efficient market?
What does this imply about the subsequent movements of returns when there is a positive serial correlation in stock returns?
What does the term “random walk” typically denote in investment contexts?
What is the typical focus of tests assessing semistrong-form efficiency?
What assertion does the semistrong-form of the efficient market hypothesis make?
Which information the semistrong-form of the EMH stipulate should be included in the current stock price?
What should investors do based on evidence supporting semistrong-form market efficiency?
What do Seyhun’s results suggest regarding the ability of investors to earn abnormal returns by following inside trades after the trades become public knowledge?