FIN 351 TEXT QUIZ CHAPTER 10

86 The basic premise of ________________ is that past trends in market movements can be used to
forecast or understand the future
A. The Efficient Market Hypothesis
B. Fundamental analysis
C. Technical analysis
D. None of the above
87. The weak form of the efficient market hypothesis can be tested by utilizing
A. Tests of independence
B. Regression analysis
C. Trading rule tests
D. A and C
88. The _________ of the efficient market hypothesis suggests that there is little or nothing to be gained
from studying past stock price trends.
A. Weak form
B. Semi-strong form
C. Strong form
D. Semi-weak form
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89. Research on the weak form of the efficient market hypothesis suggests that
A. Stock prices are independent over time
B. Past trends cannot be used to predict the future
C. Charting and technical analysis have limited value
D. More than one of the above
90. The semi-strong form of the efficient market hypothesis maintains all of the following except
A. There is no learning lag in the distribution of public information
B. All public information is immediately impounded into the value of a security
C. Technical analysis is helpful in determining whether a stock is overvalued or undervalued
D. Fundamental analysts cannot outperform the market