1. Which of the following statements about an efficient market is false?
a. It reflects all relevant and available information.
b. Prices will reflect such information as firm financial strength and earnings.
c. It reacts to new information quickly and correctly.
d. Price changes follow predictable patterns through time.

2. Which of the following is not a form of the efficient market hypothesis (EMH)?
a. Semi-strong
b. Strong
c. Semi-weak
d. Weak

3. The main difference between the three forms of market efficiency is that:
a. The definition of excess return differs
b. The definition of prices differs
c. The definition of information differs
d. There is no difference between the three forms

4. Which of the following is useful in attempting to identify mispriced securities if the semi-strong form of EMH is assumed?
a. Past stock price changes
b. Earnings expectations
c. Past and current published trading volumes
d. Relevant insider information

5. Which of the following statements is true?
a. The weak form of the EMH encompasses the semi-strong form.
b. The strong form of the EMH encompasses the semi-strong form.
c. The semi-strong form of the EMH encompasses the strong form.
d. The strong form of the EMH does not encompass the weak form.

6. If a test is statistically significant,
a. It must be economically significant as well
b. It cannot be economically significant at all
c. It could be economically significant if the test is still significant after accounting for risk, trading costs, and so on
d. None of the above

7. Which of the following conclusions is false?
a. Evidence strongly supports the weak form of EMH.
b. Evidence strongly supports the semi-strong form of EMH, with more contradictory evidence than for the weak form.
c. Evidence strongly supports the strong form of EMH.
d. Evidence does not support the strong form of EMH.

8. In an efficient market:
a. Security prices react quickly to new information
b. Security analysts will not enable investors to realize superior returns consistently
c. One cannot make money
d. a and b