FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Investment in Special Situations and Anomalies

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Anomalies related to the semi-strong form of the efficient market hypothesis indicate

A) The market is truly efficient
B) High returns are very difficult to achieve
C) The market is less than perfectly efficient
D) Public information is almost useless

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

A study by Ikenberry,Lakonishok and Vermaelen indicated what type of stock had the best performance four years after announcement of a stock repurchase,what type was it?

A) Growth stocks
B) Convertible preferred stocks
C) Low yield stocks
D) Value oriented stocks

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

The strong form of the efficient market hypothesis states that

All of the following are reasons why an investment banker may under-price a new stock issue except

The best strategy in a new public offering is often to sell the stock shortly after is becomes public.

The weak form of the EMH is generally confirmed by research evidence.

OTC stocks may not uphold the semi-strong form of the efficient market hypothesis,while listed stocks generally do.

Abnormal returns refer to gains beyond what the market would normally provide after adjustment for risk.

The Small Firm Effect asserts that there is a positive correlation between market capitalization and risk-adjusted returns.

The study by Barry and Jennings of new stock issues indicates that 90 percent of the gain occurs in the opening transaction.

A stock split has no effect on the retained earnings account.

The semi-strong form of the efficient market hypothesis maintains that:

Under the weak of the efficient market hypothesis,stock prices are considered to be independent over time.

When a merger becomes relatively certain,arbitragers come in and attempt to lock in profits.

Why does a stock repurchase improve the aftertax position of stockholders over cash dividends?

Banz's research on the small firm effect was criticized because

Recent research indicates little opportunity to profit from repurchase situations.

To be guilty of insider trading,one must be an officer of the company involved.

The semi-strong form of the efficient market hypothesis says that investors are not able to use _____________ information for their gain.

Results of research studies make it easy to identify characteristics of potential acquisition candidates.