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Lecture 1- Capital market & its efficiency

Deleted user 12 questions Updated 12 Jul 2021

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  1. 1Efficient market is [blank_start]market[blank_end] that [blank_start]fully[blank_end], [blank_start]immediately[blank_end] & [blank_start]rationally[blank_end] reflects all [blank_start]available information[blank_end] in the [blank_start]share price[blank_end]
    1. Amarket
    2. Bfully
    3. Cimmediately
    4. Drationally
    5. Eavailable information
    6. Fshare price
  2. 2One foundation of market efficiency is [blank_start]rationality[blank_end] (assumes all [blank_start]investors[blank_end] are [blank_start]rational[blank_end] & therefore, when [blank_start]new information[blank_end] is released in [blank_start]market[blank_end], they will [blank_start]adjust[blank_end] their estimates of [blank_start]share price[blank_end] in [blank_start]rational[blank_end] way
    1. Arationality
    2. Binvestors
    3. Crational
    4. Dnew information
    5. Emarket
    6. Fadjust
    7. Gshare price
    8. Hrational
  3. 3Another foundation of market efficiency is [blank_start]independent deviations[blank_end] from [blank_start]rationality[blank_end] (accepts some [blank_start]investors[blank_end] do not act fully [blank_start]rationally[blank_end] however, supposes there is [blank_start]balance[blank_end]. Irrationalities will cancel out each other & therefore [blank_start]market[blank_end] will be [blank_start]efficient[blank_end]
    1. Aindependent deviations
    2. Brationality
    3. Cinvestors
    4. Drationally
    5. Ebalance
    6. Fmarket
    7. Gefficient
  4. 4Third foundation of market efficiency is [blank_start]arbitrage[blank_end] ([blank_start]combined[blank_end] actions of many [blank_start]investors[blank_end] engaging in [blank_start]arbitrage[blank_end] result in price being [blank_start]pushed up[blank_end] towards equilibrium level which [blank_start]eliminates arbitrage[blank_end] opportunities so market is efficient)
    1. Aarbitrage
    2. Bcombined
    3. Cinvestors
    4. Darbitrage
    5. Epushed up
    6. Feliminates arbitrage
  5. 5One type of market efficiency is [blank_start]weak form[blank_end] ([blank_start]past price[blank_end] behaviour is [blank_start]reflected[blank_end] in [blank_start]current share prices[blank_end])
    1. Aweak form
    2. Bpast price
    3. Creflected
    4. Dcurrent share prices
  6. 6Another type of market efficiency is [blank_start]semi-strong form[blank_end] ([blank_start]all public information[blank_end] is reflected in [blank_start]current share prices[blank_end])
    1. Asemi-strong form
    2. Ball public information
    3. Ccurrent share prices
  7. 7Third type of market efficiency is [blank_start]strong form[blank_end] ([blank_start]all information[blank_end] is reflected in [blank_start]current share prices[blank_end])
    1. Astrong form
    2. Ball information
    3. Ccurrent share prices
  8. 8Random walk theory says [blank_start]security prices[blank_end] change [blank_start]randomly[blank_end], with no [blank_start]predictable trends[blank_end] or [blank_start]patterns[blank_end]
    1. Asecurity prices
    2. Brandomly
    3. Cpredictable trends
    4. Dpatterns
  9. 9Technical analysis is method of identifying [blank_start]undervalued stocks[blank_end] by searching for [blank_start]patterns[blank_end] in [blank_start]past stock prices[blank_end] & predicting what the stock prices could be in [blank_start]future[blank_end]
    1. Aundervalued stocks
    2. Bpatterns
    3. Cpast stock prices
    4. Dfuture
  10. 10Fundamental analysis is method of identifying [blank_start]mis-priced securities[blank_end] by analysing [blank_start]fundamental information[blank_end] such as accounting data, business prospects & [blank_start]external events[blank_end]
    1. Amis-priced securities
    2. Bfundamental information
    3. Cexternal events

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User has deleted their subject information Quiz on Lecture 1- Capital market & its efficiency, created by Deleted user on 12/07/2021.
Author
Deleted user
Language
English
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21
History
Created on 12 Jul 2021 · updated on 12 Jul 2021

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