Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
In an efficient market, how can higher returns be earned?
In an efficient market, how can higher returns be earned?
- By avoiding securities altogether
- By investing in low-risk securities
- By timing the market effectively
- By investing in riskier securities (correct)
What does the efficient market hypothesis imply about trade execution?
What does the efficient market hypothesis imply about trade execution?
- Trades are often delayed and complicated
- Trades require complex approvals and procedures
- Trades can be executed quickly, easily, and inexpensively (correct)
- Trades are usually costly and time-consuming
How predictable is a company's stock price if its revenues and earnings are highly predictable?
How predictable is a company's stock price if its revenues and earnings are highly predictable?
- Predictable only for institutional investors
- Unpredictable
- Highly predictable (correct)
- Predictable in the short term only
In a semi-strong efficient market, what advantage do traders with non-public information have?
In a semi-strong efficient market, what advantage do traders with non-public information have?
Signup and view all the answers
Can investors skilled in exploiting behavioral errors consistently outperform the market?
Can investors skilled in exploiting behavioral errors consistently outperform the market?
Signup and view all the answers
