Since limit orders and quotes provide trading options to the market as a whole, what effect would an increase in volatility have on bid/ask spreads? Should limit order traders place their orders close to or far from the market when they cannot adjust their limit prices quickly?

Does the efficient market hypothesis suggest that an investor can outperform the market? What effect does the arrival of information have on the market efficiency? How rapidly do security prices change in response to new information in an efficient market?

Which of the following statements are true if the efficient market hypothesis holds?a. It implies that future events can be forecast with perfect accuracy.b. It implies that prices reflect all available information.c. It implies that security prices change for no discernible reason.d. It implies that prices do not fluctuate.

The weak form of the efficient market hypothesis states that _______?   Group of answer choices   successive price changes are dependent. successive price changes are independent. successive price changes depend on trading volume. successive price changes are biased. properly specified trading rules are of value.

Why would an advocate of the efficient market hypothesis believe that even if many investors exhibit the behavioral biases, security prices might still be set efficiently?

If the weakest form of market efficiency holds, then security prices reflect all information found in past prices and volume. Thus, traditional "technical analysis" will not work. Group of answer choices True False

In general, would a falling rate of market interest cause the price of an MPT security to increase or decrease? Would the increase or decrease be greater if the security was issued at a discount? Would an increase in prepayment be likely or unlikely? Describe with an example.

Which of the following statements is false?     A.   Historical VaR simulation involves using past data as a guide to what will happen in the future.   B.   Illiquidity is observed when there is a large difference between the offered sale price and the bid price.   C.   Yield spared is reflected in the size of the bid-ask spreads.   D.   The stressed VaR is based on how market variables have moved during a particularly adverse time period.

What are the TRIN Statistics and Cofidence Index and what do their values describe about the bullish and bearish direction of the market?

Which of the following is not a characteristic of an efficient market? Investors can frequently make profits by predicting asset market prices that are different from intrinsic values. The market value of all securities at any one instant in time fully reflect all available information. Investors act rationally. The forces of demand and supply work to maintain that the security's market price and its intrinsic value are in equilibrium.