5 Questions
What is one way that a firm can assess the value of a new investment?
By measuring the price impact on the announcement of the investment decision
Which form of market efficiency is characterized by uncorrelated consecutive price changes?
Weak-form efficiency
What type of analysis does not help achieve superior returns in a market with weak-form efficiency?
Technical analysis using past price trends
Which method would be least effective in studying the weak-form efficiency of a market?
Conducting a survey among market participants
How can policymakers judge the impact of various macroeconomic policy changes according to the text?
By assessing the market value impact
Test your knowledge on market efficiency forms, including weak-form and semi-strong form. Understand how market efficiency impacts stock prices and the ability of investors to outperform the market.
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