1) Which of the following statements is true of warrants?
a. A warrant is almost identical to a put option.
b. When warrants are exercised the number of warrants still outstanding increases.
c. A warrant is a combination of call and put options.
d. A warrant is issued by the corporation rather than another
2) Which of the following is an attribute of futures contract?
a. There are no limits on the size of the position that any investor can take in financial futures markets.
b. Futures contracts are marked to the market on a daily basis
c. Margins for futures are more relative to other types of markets.
d. Almost all futures positions are settled by delivery.
3) Which of the following is not a general conclusion of studies of stock prices?
a. The serial correlation in daily returns in U.S. stocks is positive.
b. The serial correlation in longer period returns (monthly, annual) in U.S. stocks is negative.
c. Filter rules greater than 1% generally do not make money.
d. Stocks that have done well in the past are also likely to do well in the future.
e. There are more runs in daily stock prices than we would expect to find under a random walk.
4) Which of the following is an implication of market efficiency?
a. Resources are allocated among firms that put them to the best use.
b. No investor will do better than the S&P 500 in any time period.
c. No investor will do better than the S&P 500 consistently after adjusting for risk.
d. No investor will do better than the S&P 500 consistently after adjusting for risk and transactions costs.
5) Tests of market efficiency tend to
a. look for statistical dependencies that exist in price changes over time.
b. measure the nature of the impact of new information on security prices as that new information becomes available.
c. search for trading systems that might be able to generate supernormal profits.
d. all of the above
1) Which of the following statements is true of warrants?
a. A warrant is almost identical to a put option.
b. When warrants are exercised the number of warrants still outstanding increases.
c. A warrant is a combination of call and put options.
d. A warrant is issued by the corporation rather than another
2) Which of the following is an attribute of futures contract?
a. There are no limits on the size of the position that any investor can take in financial futures markets.
b. Futures contracts are marked to the market on a daily basis
c. Margins for futures are more relative to other types of markets.
d. Almost all futures positions are settled by delivery.
3) Which of the following is not a general conclusion of studies of stock prices?
a. The serial correlation in daily returns in U.S. stocks is positive.
b. The serial correlation in longer period returns (monthly, annual) in U.S. stocks is negative.
c. Filter rules greater than 1% generally do not make money.
d. Stocks that have done well in the past are also likely to do well in the future.
e. There are more runs in daily stock prices than we would expect to find under a random walk.
4) Which of the following is an implication of market efficiency?
a. Resources are allocated among firms that put them to the best use.
b. No investor will do better than the S&P 500 in any time period.
c. No investor will do better than the S&P 500 consistently after adjusting for risk.
d. No investor will do better than the S&P 500 consistently after adjusting for risk and transactions costs.
5) Tests of market efficiency tend to
a. look for statistical dependencies that exist in price changes over time.
b. measure the nature of the impact of new information on security prices as that new information becomes available.
c. search for trading systems that might be able to generate supernormal profits.
d. all of the above
