Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,721.61
Visitor$980.00
Gisele$936.78
aurora$629.43
Visitor$464.00
Visitor$450.00
Visitor$410.00
Visitor$390.00
Visitor$310.00
Visitor$260.00
Visitor$250.00
Visitor$247.00
Visitor$210.00
lukeh$199.09
Visitor$190.00
Visitor$190.00
Visitor$170.00
Visitor$170.00
Visitor$150.00
Visitor$150.00
 

Question 100  market efficiency, technical analysis, joint hypothesis problem

A company selling charting and technical analysis software claims that independent academic studies have shown that its software makes significantly positive abnormal returns. Assuming the claim is true, which statement(s) are correct?

(I) Weak form market efficiency is broken.

(II) Semi-strong form market efficiency is broken.

(III) Strong form market efficiency is broken.

(IV) The asset pricing model used to measure the abnormal returns (such as the CAPM) had mis-specification error so the returns may not be abnormal but rather fair for the level of risk.

Select the most correct response:



Question 119  market efficiency, fundamental analysis, joint hypothesis problem

Your friend claims that by reading 'The Economist' magazine's economic news articles, she can identify shares that will have positive abnormal expected returns over the next 2 years. Assuming that her claim is true, which statement(s) are correct?

(i) Weak form market efficiency is broken.

(ii) Semi-strong form market efficiency is broken.

(iii) Strong form market efficiency is broken.

(iv) The asset pricing model used to measure the abnormal returns (such as the CAPM) is either wrong (mis-specification error) or is measured using the wrong inputs (data errors) so the returns may not be abnormal but rather fair for the level of risk.

Select the most correct response:




Copyright © 2014 Keith Woodward