EMH Model

Student ___________________________________________________________________________ 1.The semi-strong form of the EMH states that ________ must be reflected in the current stock price.A.All security price and volume dataB.All publicly available informationC.All information including inside informationD.All costless information 2.Random price movements indicateA.Irrational marketsB.That prices cannot equal fundamental valuesC.That technical analysis to uncover trends can be quite usefulD.That markets are functioning efficiently 3.The primary objective of fundamental analysis is to identify __________.A.Well run firmsB.Poorly run firmsC.Mis-priced stocksD.High P/E stocks 4.Bonds rated _____ or better by Standard and Poors are considered investment
If the yield curve is downward sloping, this indicates that investors expect short-term interest rates to __________ in the future.A.IncreaseB.DecreaseC.Not changeD.Change in an unpredictable manner Bodie - Chapter 10 34Difficulty Medium 6.A convertible bond has a par value of 1,000 but its current market price is