Question

15. Weak form, semi-strong form, and strong form all refer to what general area of market efficiency?

Group of answer choices

a. Allocative

b. Informational

c. Operational

d. Technical

16. The following statements are basic tenets of ___________:
"Prices are determined by patterns and trends; and prices are determined by both fundamental and psychological factors"

Group of answer choices

a. Technical analysis

b. Fundamental analysis

c. Rational investing

d. Sector rotation

17. What is meant by the term "mutual fund persistence"?

Group of answer choices

a. The ability of a fund to charge higher fees

b. The ability of a fund to repeat superior performance

c. The ability of a fund to stay in business

d. The ability of a fund to accurately time the market

18. If you have learned that markets tend to over-react to negative earnings announcements, then this would be a violation of the _________ form of market efficiency and your best strategy would be to __________ the stock right after the announcement.

Group of answer choices

a. Weak, buy

b. Semi-strong, buy

c. Weak, sell

d. Semi-strong, sell

Answer 1

1. Weak, semi strong, and strong are referring to to informational and operational area of market efficiency.

All the publicly and privately available informations are seen to be whether discounted or not according to Efficient market hypothesis and there is proper discounting of them through proper operations.

Correct answer will be option ( B) informational & option (c) operational.

2.(c) Rational investing means emphasising upon fundamental and psychological factors.

3. (B) mutual fund persistence is the ability of mutual fund to deliver higher return continuously.

4.(d) Semi strong, sell