Q6. Which of the following is NOT an assumption that underlies an efficient capital market?
A) The expected returns implicitly include risk in the price of the security.
B) Investors adjust their estimate of security prices slowly to reflect their interpretation of the new information received.
C) New information comes to the market in a random fashion and the timing of the news announcements are independent of each other.
Q7. Which of the following statements regarding efficient capital markets and its underlying assumptions is least accurate?
A) If the underlying assumptions for efficient capital markets hold true, then price changes are independent and random.
B) Efficient markets require that a large number of profit-maximizing investors come together to collectively analyze and value securities.
C) Price adjustments may be imperfect but are unbiased.
Q8. Which of the following would be inconsistent with an efficient market?
A) Stock prices adjust rapidly to new information.
B) Price adjustments are biased.
C) Price changes are independent.
Q9. In an efficient market new information flows:
A) directly.
B) in an orderly fashion.
C) randomly.
Q10. If the efficient markets hypothesis is true, portfolio managers should do all of the following EXCEPT:
A) Minimize transaction costs.
B) Work more with clients to better quantify their risk preferences.
C) Spend more time working on security selection.
[此贴子已经被作者于2009-3-2 13:11:46编辑过] | 
发表于 2009-3-2 13:11
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