1- proponents of the Efficient Markets Hypothesis tend to recommend:
a-Technical analysis
b-Earning analysis
c-Passive investing
d-Mutual funds
e-Lucky strike
2- Investors should pursue international investments for the following reasons:
a-Diversification benefits
b-Higher returns due to higher risk
c-Tax savings
d-All of the above
e-Only A and B
3- Top down investment analysis always includes:
a-Company analysis
b-Technical analysis
c-Industry analysis
d-Macroeconomics analysis
e-All of the above
4- which one of the following option strategies is the most risky?
a-Buying a put option
b-Writing a call option
c-Buying a call option
d-Buying a put and call on the same stock
e-Cannot tell without more info
5- computation of a risk-adjusted required return is best accomplished using
a-The dividend discount model
b-The price-earnings ratio
c-The market model beta
d-Momentum
e-Astrology
6- which of the following are both TRUE and evidence of market efficiency?
a-Stock prices seem to anticipate merger outcomes
b-Earnings announcement have no lasting impact on stock prices
c-Stocks exhibit significant price momentum
d-Mutual fund managers tend to outperform market averages
e-Small stocks earn higher returns, on average