1. Financial researchers have suggested that capital markets are weak-form efficient because the stock price returns are believed to be _________.
a. normally cumulated
b. serially uncorrelated
c. abnormally cumulated
d. serially correlated
e. ordinary collaborated
2. Suppose that investors have not been able to earn excess returns using newly released announcements about the firms. Based on this statement only, which of the following must be correct?
a. Markets are semi-strong-form efficient, but not weak-form efficient.
b. Markets are at least weak-form and semi-strong-form efficient.
c. Markets are weak-form efficient, but not semi-strong-form efficient.
d. Markets are semi-strong-form efficient, but not weak-form efficient.
e. Markets are definitely strong-form efficient.