Efficient Markets Hypothesis Flashcards
1
Q
If the weak form of the EMH is true, which sorts of trading advantage(s) would be eliminated?
A) Insider information only
B) Fundamental information only
C) Technical information only
D) All advantages including: Insider, Fundamental and Technical
A
C
2
Q
Which form(s) of the EMH prohibit profiting from Fundamental Analysis?
A
Semi-Strong and Strong
3
Q
Which of the following are not assumptions of the Efficient Markets Hypothesis?
A) New Information arrives randomly
B) Small number of investors
C) Prices adjust quickly
D) Prices reflect all available information
A
B
4
Q
Which version of the Efficient Market Hypothesis suggests that insider trading cannot be possible?
A) Strong
B) Semi-strong
C) Weak
D) All of the above
A
A
