Which of the following statements about the implications of tests for the efficient market hypothesis (EMH) is least accurate?
A. Bypurchasingamarketindexfund,aninvestorcanmatchthemarketreturnandminimizecosts.
B. Otherthancorporateinsidersandmarketspecialists,mosttradershavemonopolisticaccesstoinformation,whichrejectsthestrong-formEMH.
C. Technicaltradingrulesdonotconsistentlyprovideexcessreturnsafteradjustingfortradingcostsandtaxes.
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On 1 January, a company entered into a capital lease resulting in an obligation of $10,000 being recorded on the balance sheet. The lessors implicit interest rate was 12 percent. At the end of the fir
A. $1,000
B. $1,200
C. $2,500
The nominal risk-free rate of return during a given period is best described as the return, that compensates investors for the:
A. Timevalueofmoneyonly
B. Timevalueofmoneyandtheexpectedrateofinflationonly
C. Timevalueofmoneyandtheuncertaintyofthereturnonly
Which of the following statements about the market portfolio and the capital market line (CML) is least accurate? The market portfolio:
Assumesanequalamountisinvestedineachriskyasset.
B. IsperfectlypositivelycorrelatedwithotherportfoliosontheCML.
C. Bearsriskthatisrelatedtochangesinmacroeconomicvariable.
Which of the following is included in a present model:
A. Enterprisevalue.
B. Freecashflowtoequitymodel.
C. Pricetobookvalue.