14) Weak-form efficiency implies that past stock returns A) form patterns that tend to repeat. B) are major inputs to investors for forming trading strategies. C) do not help to predict future returns. D) are difficult to explain.
14) Weak-form efficiency implies that past stock returns A) form patterns that tend to repeat. B) are major inputs to investors for forming trading strategies. C) do not help to predict future returns. D) are difficult to explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:14) Weak-form efficiency implies that past stock returns
A) form patterns that tend to repeat.
B) are major inputs to investors for forming trading strategies.
C) do not help to predict future returns.
D) are difficult to explain.
15) A firm has debt beta of 0.2 and an asset beta of 1.9. If the debt-equity ratio is 75 percent,
what is the levered equity beta?
A) 1.90
B) 3.18
C) 2.42
D) 2.63
16) Generally, a firm is able to find positive-NPV opportunities among its
I) financing decisions;
II) capital investment decisions;
III) short-term borrowing decisions
A) I only
B) I and III only
C) III only
D) II only
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