The need to have an understanding about the ability of themarket to imbibe information into the prices has led to countless attempts to study and characterize the levels of efficiency of different segments of the financial markets.

Related MCQs

• If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm, but not information that is available only to insiders.
• Markets are inefficient when prices of securities assimilate and reflect information about them.
• If you believe in the _______ form of the EMH, you believe that stock prices only reflect all information that can be derived by examining market trading data such as the history of past stock prices, trading volume or short interest.
• If you believe in the _________ form of the EMH, you believe that stock prices reflect all available information, including information that is available only to insiders.
• Program trading decreases market efficiency by exaggerating price discrepancies between the cash and futures markets
• If security prices exhibits semi-strong form of efficiency, one will not gain if he
• In which form of the efficient market hypothesis do security prices reflect only past stock price and volume information?
• The ability of the investor to convert an investment into cash in a short period of time is called
• Stock returns are generally expected to be independent across weekdays, but a number of studies have found returns on Monday to be lower than in the rest of the week. This departure from market efficiency is also sometimes called the _____ effect.
• Which of the following statements is/are not correct with respect to the ‘Constant Mix Strategies’ of asset allocation? I. Investors adopting these strategies tend to maintain an exposure to stocks that are in constant proportion of their wealth. II. The risk-tolerance level of the investors varies proportionately with the level of theirwealth. III. Reversals in stock markets oppose constant mix strategies over the buy and hold IV. strategies.