Market Efficiency Forms Quiz
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Questions and Answers

What is one way that a firm can assess the value of a new investment?

  • By analyzing past stock performance
  • By conducting a survey among customers
  • By examining the impact on competitor's market price
  • By measuring the price impact on the announcement of the investment decision (correct)
  • Which form of market efficiency is characterized by uncorrelated consecutive price changes?

  • Random walk efficiency
  • Strong-form efficiency
  • Semi-strong form efficiency
  • Weak-form efficiency (correct)
  • What type of analysis does not help achieve superior returns in a market with weak-form efficiency?

  • Fundamental analysis of company financials
  • Technical analysis using past price trends (correct)
  • Sentiment analysis of market participants
  • Behavioral analysis of investor psychology
  • Which method would be least effective in studying the weak-form efficiency of a market?

    <p>Conducting a survey among market participants</p> Signup and view all the answers

    How can policymakers judge the impact of various macroeconomic policy changes according to the text?

    <p>By assessing the market value impact</p> Signup and view all the answers

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