BUSI 420 Read & Interact Jordan, Miller Jr., & Dolvin Chapter 7 solutions complete answers

BUSI 420 Read & Interact Jordan, Miller Jr., & Dolvin Chapter 7 solutions complete answers

 

True or false: Corporate insiders are barred from making any trades in the stock of their company.

 

If a market is semistrong form efficient, then it will also be _____ form efficient.

 

A return in excess of that earned by other investments having similar risk is the          return.

 

The ability of people with insider information to make abnormal returns suggests that the market is not ________ form efficient.

 

According to the "random walk," which of the following is correct?

 

In an event study, investment researchers are most concerned about what type of return?

 

True or false: Corporate insiders are barred from making an trades in the stock of their company.

 

True or false: Assume the market return is 11% and a mutual fund manager returns 12%. We can therefore conclude that this manager "beat the market."

 

True or false: According to semistrong form efficiency, an analyst who finds some unique information buried in a firm's published financial statements will be at an advantage to the rest of the market.

 

If markets are efficient, then which of the following is more important:

 

The random walk hypothesis is most related to which form of market efficiency?

 

To test the impact of announcements on stock prices, researchers use        studies.

 

True or false: The performance of mutual fund managers is consistent with the overall notion that equity markets are efficient.

 

An insider is defined as someone who has access to        nonpublic information.

 

Which day of the week has historically had the lowest average return?

 

True or false: According to the January effect, we would expect stocks in the S&P 500 to have high returns in January.

 

True or false: If markets are efficient, then the best approach is to use low cost index funds.

 

Researchers have found that it takes _____ for the market price of a stock to adjust to unanticipated news.

 

The       -earnings puzzle shows that purchasing stocks with relatively low PE ratios appears to be a potentially profitable investment strategy.

 

What is the role of a portfolio fund manager in an efficient market?

 

A technique developed by large investors prior to the Crash of 1987 that enabled very rapid selling of enormous quantities of shares of stock following a market decline is called _____.

 

Monday is the only day with a negative average return. This is the _____ effect.

 

The primary sector of the market related to the 2008 crash was ________.

 

The January effect is the tendency of      -cap stocks to have large returns in January.

 

True or false: In contrast to the expectations of the EMH, stock prices generally take a few days to fully respond to earnings announcements.

 

Over long periods of time, stocks with relatively _____ P/E ratios generally outperform other stocks.

 

One possible cause of the Crash of 1987 was the use of computers to implement large sell orders. This process is known as        trading.

 

True or false: Most bubbles (and related crashes) are, at least in part, due to "easy money" and the use of borrowed funds to buy a particular asset.

 

The day-of-the-week effect is defined as the tendency for which day of the week to have a negative average rate of return?

 

Efficient markets tend to exist:

 

If the financial markets were regulated such that the markets maintained strong-form efficiency, then:

 

If the market is semistrong-form efficient, then which one of the following statements is true?

 

If the markets are efficient, then why is asset allocation still considered important?

 

If you believe that stock market prices follow a random walk, then:

 

Research on semistrong-form efficient markets indicates which one of the following is correct?

 

True or false: Mutual fund managers have a better chance of outperforming the markets over longer periods.

 

Which form of market efficiency exists if the market is efficient only in regard to historical information?

 

Which of the following holds that investors cannot consistently earn positive abnormal returns?

 

Which of the following is a research method used to study the effects news has on stock prices?

 

Which of the following terms is used to describe a stock price that moves over time creating no discernable pattern?

 

Which one of the following best describes the type(s) of information included in a strong-form efficient market?

 

Which one of the following terms best describes the information you know about a company that will have a significant effect on the price of the company's stock once that information is released?

 

Which one of the following terms is used to describe a market situation where prices are much higher than either fundamental or rational analysis would tend to support?

 

Which one of the following terms is used to describe a sudden and significant collapse in market prices?

 

Which one of the following terms is used to identify the NYSE rules which slow or stop trading when the DJIA declines by more than a specified amount during a trading session?