17. Which of the following characteristic is consistent with value stock? The stocks appear to be overvalued for some reasons. b. The stocks are having low price-carnings ratio. The stocks are having high price-book value ratio. d. a. c. The stocks are having assets involve great risks but also have possibilities of great gains. None of the above. e.

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
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D6)
17. Which of the following characteristic is consistent with value stock?
The stocks appear to be overvalued for some reasons.
b. The stocks are having low price-carnings ratio.
The stocks are having high price-book value ratio.
d. The stocks are having assets involve great risks but also have possibilities of great
gains.
None of the above.
a.
с.
e.
18. Which of the following behaviours is consistent with escalation bias?
Buying more of a stock as it increases in value.
b. Buying more of a stock as it decreases in value.
Selling a stock as it decreases in value.
d. Selling a stock as it increases in value.
e. Buying or selling a stock as it increases in value.
a.
с.
19. The weak form of the efficient market hypothesis states that
Successive price changes are dependent.
b. Successive price changes are independent.
Successive price changes are biased.
d. Successive price changes depend on trading volume.
Properly specified trading rules are of value.
a.
с.
е.
20. In a value weighted index
Exchange rate fluctuations have a large impact.
b. Exchange rate fluctuations have a small impact.
Large companies have a disproportionate influence on the index.
d. Small companies have an exaggerated effect on the index.
None of the above
a.
с.
e.
Transcribed Image Text:17. Which of the following characteristic is consistent with value stock? The stocks appear to be overvalued for some reasons. b. The stocks are having low price-carnings ratio. The stocks are having high price-book value ratio. d. The stocks are having assets involve great risks but also have possibilities of great gains. None of the above. a. с. e. 18. Which of the following behaviours is consistent with escalation bias? Buying more of a stock as it increases in value. b. Buying more of a stock as it decreases in value. Selling a stock as it decreases in value. d. Selling a stock as it increases in value. e. Buying or selling a stock as it increases in value. a. с. 19. The weak form of the efficient market hypothesis states that Successive price changes are dependent. b. Successive price changes are independent. Successive price changes are biased. d. Successive price changes depend on trading volume. Properly specified trading rules are of value. a. с. е. 20. In a value weighted index Exchange rate fluctuations have a large impact. b. Exchange rate fluctuations have a small impact. Large companies have a disproportionate influence on the index. d. Small companies have an exaggerated effect on the index. None of the above a. с. e.
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