Markets are inefficient when prices of securities assimilate and reflect information about them.

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.
• 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.
• In which form of the efficient market hypothesis do security prices reflect only past stock price and volume information?
• 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.
• 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.
• Program trading decreases market efficiency by exaggerating price discrepancies between the cash and futures markets
• Which of the following helps determine the relationship between the expected return and risk for individual securities?
• While bond prices fluctuate,
• If security prices exhibits semi-strong form of efficiency, one will not gain if he