Question 86

Which of the following statements about tests of the efficient market hypothesis (EMH) is most accurate?

A)    The results of statistical and trading rule tests support the weak form of the EMH.

B)   All three forms of the EMH are supported by the fact that no documented market anomalies have persisted over time.

C)   The superior historical performance of exchange specialists and corporate insiders is consistent with the strong form of the EMH.

D)   Cross-sectional tests of market efficiency based on price-earnings ratios, analyst coverage, and book-to-market values generally support the semi-strong form of the EMH.

Question 87

As a population increases in average age, there is significant growth in the health care industry and developers of retirement communities. This is best described as an example of which type of structural economic change?

A)    Lifestyles.

B)   Technology.

C)   Politics and regulation.

D)   Demographics.

The most attractive investment opportunities when the economy is slowing and entering a recession are:

A)    commodities and commodity-producer stocks.

B)   stocks and commercial property.

C)   cyclical stocks and bonds.

D)   bonds and interest-sensitive stocks.

Question 89

Which of the following statements regarding orders in exchange markets is least accurate?

A)    In a short sale, a trader borrows stock and sells it.

B)   A limit sell order is an order to sell at a price greater than the limit price.

C)   A stop buy order is an order to purchase a stock if the price falls to the stop price.

D)   A stop buy order can be combined with a short sale to limit losses.

Question 90

An industry has the following characteristics:

• Sales growth is near the average growth rate of the economy.

• Profit margins are narrow.

• Return on equity is close to the economy-wide average.

This industry is most likely in which phase of its life cycle?

A)    Deceleration of growth and decline.
B)   Stabilization and market maturity.
C)   Mature growth.
D)   Pioneering.

[此贴子已经被作者于2008-11-8 9:46:09编辑过]

答案和详解如下！

Question 86

Which of the following statements about tests of the efficient market hypothesis (EMH) is most accurate?

A)    The results of statistical and trading rule tests support the weak form of the EMH.

B)   All three forms of the EMH are supported by the fact that no documented market anomalies have persisted over time.

C)   The superior historical performance of exchange specialists and corporate insiders is consistent with the strong form of the EMH.

D)   Cross-sectional tests of market efficiency based on price-earnings ratios, analyst coverage, and book-to-market values generally support the semi-strong form of the EMH.

The correct answer was A) The results of statistical and trading rule tests support the weak form of the EMH.

Statistical and trading rule tests support the weak-form EMH contention that security prices reflect all historical market information and that mechanical trading rules do not result in superior returns.

The other statements are false. The superior historical performance of exchange specialists and corporate insiders argues against the strong form of the EMH. Cross-sectional tests based on price-earnings ratios, analyst coverage, and book-to-market values offer evidence against the semi-strong form of the EMH. These tests show that certain stocks have high realized returns (for example, low P/E stocks and high book value to market value stocks). A number of market anomalies have been documented, such as the small-firm and negleced-firm effects and several calendar effects.

This question tested from Session 13, Reading 54, LOS b, (Part 2)

Question 87

As a population increases in average age, there is significant growth in the health care industry and developers of retirement communities. This is best described as an example of which type of structural economic change?

A)    Lifestyles.

B)   Technology.

C)   Politics and regulation.

D)   Demographics.

The correct answer was D) Demographics.

Demographic factors include age distribution and population changes, as well as changes in income distribution, ethnic composition of the population, and trends in the geographical distribution of the population.

This question tested from Session 14, Reading 57, LOS a

Question 88

The most attractive investment opportunities when the economy is slowing and entering a recession are:

A)    commodities and commodity-producer stocks.

B)   stocks and commercial property.

C)   cyclical stocks and bonds.

D)   bonds and interest-sensitive stocks.

The correct answer was D) bonds and interest-sensitive stocks.

Bonds and interest-sensitive stocks are attractive investments in a slowing economy because interest rates are likely to decline. Cyclical stocks, commodities, and commercial and residential property are more attractive investments when the economy recovers and an expansion begins.

This question tested from Session 14, Reading 58, LOS a

Question 89

Which of the following statements regarding orders in exchange markets is least accurate?

A)    In a short sale, a trader borrows stock and sells it.

B)   A limit sell order is an order to sell at a price greater than the limit price.

C)   A stop buy order is an order to purchase a stock if the price falls to the stop price.

D)   A stop buy order can be combined with a short sale to limit losses.

The correct answer was C) A stop buy order is an order to purchase a stock if the price falls to the stop price.

A stop buy order is an order to buy a stock if the price rises to the stop price. This type of order is often used to limit losses on a short position. A limit buy order specifies a maximum price and a limit sell order specifies a minimum price.

This question tested from Session 13, Reading 52, LOS e

Question 90

An industry has the following characteristics:

• Sales growth is near the average growth rate of the economy.

• Profit margins are narrow.

• Return on equity is close to the economy-wide average.

This industry is most likely in which phase of its life cycle?

A)    Deceleration of growth and decline.
B)   Stabilization and market maturity.
C)   Mature growth.
D)   Pioneering.

The correct answer was B) Stabilization and market maturity.

During the stabilization and market maturity phase, the longest phase in the industry life cycle, industry sales growth rates approach the average growth rate of the economy. Fierce competition produces slim profit margins, and ROE becomes normal.

This question tested from Session 14, Reading 58, LOS c

ThanQ

thanks

thx!

啊

thxs...

OK

thx