Fin 301 Exam 1 Financial Market Question s and Answers
2 views 0 purchase
Course
FIN301
Institution
FIN301
The primary role of financial markets is to [blank1] the flow of funds from
individuals and businesses - Answer-facilitate
Which informational form takes all information contained in past price movements is reflected in current market prices?
a)Weak Form
b)Semi Strong Form
c)Strong Form - ...
Fin 301 Exam 1 Financial Market
Question s and Answers
The primary role of financial markets is to [blank1] the flow of funds from
individuals and businesses - Answer-facilitate
Which informational form takes all information contained in past price movements is
reflected in current market prices?
a)Weak Form
b)Semi Strong Form
c)Strong Form - Answer-a)Weak Form
If you have private information, under which informational form can you make excess
returns?
a)Semi Strong Form
b)Weak Form
c)Strong Form - Answer-a)Semi Strong Form
The over-the-counter (OTC) market is an example of a secondary market.
True/ False - Answer-True
Which one of the following does not belong to the money market instruments?
a) Stocks
b)Commercial Paper
c)Certificate of Deposit
D) T-Bills - Answer-a) Stocks
Which one of the financial markets is the most liquid market in the world?
a)Money Market
b)Financial Markets for Bonds
c)Forex Market
D)Over-the-Counter Markets - Answer-c)Forex Market
Eugene F. Fama, the 2013 Nobel Prize winner, defined a market to be
"informationally efficient" if prices always incorporate all available information.
The Efficient Market Hypothesis (EMH) states that it is [blank1] for investors to
either purchase undervalued stocks or sell stocks for inflated prices. - Answer-
impossible
Mutual funds provide [blank1] management of capital pooled by
shareholders - Answer-active
Financial services firms—such as broker-dealers, advisory firms and asset
managers, as well as their professional representatives—do not need to
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.