If the efficient markets hypothesis is true, then ?

Related Mcqs:

An increase in the prevailing interest rate ?

A. increases the present value of future returns from investment and increases investment B. decreases the present value of future return from investment and decreases investment C. decreases the present value of future returns from investment and increase investment D. increases the present value of future returns from investment and decreases investment...

If people are risk averse, then ?

A. None of these answers are true B. All of these answers are true C. They dislike bad things more than the like comparable good things D. The utility they would lose from losing a Rs50 bet would exceed the utility they would gain from winning a Rs 50 bet Their utility function exhibit the … If people are risk averse, then ?Read More...

Which of the following is an example of moral hazard ?

A. After Gull buys fire insurance, he begins to smoke cigarettes in bed. B. None of these answers demonstrate moral hazard C. Mahmood has been feeling poorly lately so he seeks health insurance D. All of these answers demonstrate moral hazard...

Diversification of portfolio can ?

A. reduce aggregate risk B. eliminate all risk C. increase the standard deviation of the portfolio’s return D. reduce idiosyncratic risk...

The study of a company’s accounting statements and future prospects to determine its value is known as ?

A. information analysis B. risk management C. fundamental analysis D. diversification...