Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is one way that a firm can assess the value of a new investment?
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?
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?
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?
Which method would be least effective in studying the weak-form efficiency of a market?
Signup and view all the answers
How can policymakers judge the impact of various macroeconomic policy changes according to the text?
How can policymakers judge the impact of various macroeconomic policy changes according to the text?
Signup and view all the answers
