If the price of a stock falls on 4 consecutive days of trading, then stock prices: A. Cannot be following a random walk B. Can still be following a random walk C. Are almost certain to decrease the following day D. Can still be following a random walk E. None of above
If the price of a stock falls on 4 consecutive days of trading, then stock prices: A. Cannot be following a random walk B. Can still be following a random walk C. Are almost certain to decrease the following day D. Can still be following a random walk E. None of above
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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Transcribed Image Text:16. If the price of a stock falls on 4 consecutive days of trading, then stock prices:
A. Cannot be following a random walk
B. Can still be following a random walk
C. Are almost certain to decrease the following day
D. Can still be following a random walk
E. None of above
17. An analyst who relies on past cycles of stock pricing to make investment decisions is:
A. Assuming that market is not even weak-form efficient.
B. Performing fundamental analysis.
C. Relying on strong-form market efficiency.
D. Relying on the random walk of stock prices.
E. None of above.
18. A positive value for PVGO suggests that the firm has:
A. A positive return on equity
B. A positive plow back ratio
C. Investment opportunities with superior returns
D. A high rate of constant growth
E. None of above
19. Which of the following is least likely to contribute to going concern value?
A. Extra earning power
B. Intangible assets
C. Future investment opportunities
D. High liquidation value
E. None of above
20. The coupon rate of a bond equals:
A. its yield to maturity.
B. a defined percentage of its face value.
C. the yield to maturity when the bond sells at a discount.
D. the annual interest divided by the current market price.
E. None of above
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