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Efficient Market Hypothesis Quiz

If the capital markets are efficient, then the sale or purchase of any security at the prevailing market price is:

Generally, a firm is able to find positive NPV opportunities with:

Financing decisions differ from investment decisions for which of the following reasons?

The statement that stock prices follow a random walk implies that:

Which of the following statement(s) is/are true if the efficient market hypothesis holds?

Which of the following is a statement of weak form efficiency?

Suppose that, after conducting an analysis of past stock prices, you came up with the following observations. Which would appear to contradict the weak form of the efficient market hypothesis?

A lawyer works for a firm that advises corporate firms planning to sue other corporations for antitrust damages. He finds that he can "beat the market" by short selling the stock of the firm that will be sued. This finding is in violation of the:

In order to test the efficient-market hypothesis in the semi-strong form, researchers have used (the):

Studies on mutual fund performance indicate