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8) a) Systematic risk is diversifiable. T or F? b) Strong form efficient markets incorporate all...

8)

a) Systematic risk is diversifiable. T or F?

b) Strong form efficient markets incorporate all information, except for insider knowledge. T or F?

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Answer #1

Answer 8 a)

False. Systematic Risk is the risk which is inherent in the market. i.e. it can not be controlled.

Answer 8 b)

False. In the Strong Form Markets, the stock incorporates all the information. ie publically available information as well as the information that is not even public and there is no type of information that can give advantage to investor on the market.

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