Podcast
Questions and Answers
What does market efficiency refer to?
What does market efficiency refer to?
- The degree to which prices in financial markets are affected by random events
- The degree to which prices in financial markets are influenced by emotional decisions
- The degree to which prices in financial markets are controlled by government regulations
- The degree to which prices in financial markets reflect all available information (correct)
Which form of market efficiency suggests that current prices fully reflect all past trading information?
Which form of market efficiency suggests that current prices fully reflect all past trading information?
- Weak Form Efficiency (correct)
- Strong Form Efficiency
- Moderate Form Efficiency
- Semi-Strong Form Efficiency
What is the implication of semi-strong form efficiency on fundamental analysis?
What is the implication of semi-strong form efficiency on fundamental analysis?
- It is not effective in consistently outperforming the market (correct)
- It is sometimes effective in consistently outperforming the market
- It is a highly effective way to consistently outperform the market
- It is only effective for short-term investments
What is reflected in the current prices in strong form efficiency?
What is reflected in the current prices in strong form efficiency?
What is the consequence of technical analysis in weak form efficiency?
What is the consequence of technical analysis in weak form efficiency?
What does strong form efficiency imply about the ability to consistently outperform the market?
What does strong form efficiency imply about the ability to consistently outperform the market?
What is a characteristic of arbitrage opportunities in an efficient market?
What is a characteristic of arbitrage opportunities in an efficient market?
In an efficient market, which of the following is true about price movements?
In an efficient market, which of the following is true about price movements?
What is the implication of active trading in an efficient market?
What is the implication of active trading in an efficient market?
What is the result of efficient allocation of resources in an efficient market?
What is the result of efficient allocation of resources in an efficient market?
What is a limitation of the concept of market efficiency?
What is a limitation of the concept of market efficiency?
What is the role of the concept of market efficiency in financial markets?
What is the role of the concept of market efficiency in financial markets?
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