If a market is weak-form efficient but semistrong-form inefficient, then which of the following types of portfolio

Question:

If a market is weak-form efficient but semistrong-form inefficient, then which of the following types of portfolio management is most likely to produce abnormal returns?

A. Passive portfolio management.

B. Active portfolio management based on technical analysis.

C. Active portfolio management based on fundamental analysis.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

See More Books

Question Posted: Mar 21, 2024 07:01 AM

See More Questions

1. Proponents of the efficient market hypothesis think technical analysts: a. Should focus on relative strength b. Should focus on resistance levels c. Should focus on support levels d. Are wasting...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
There are three assets, A, B and C, where A is the market portfolio and C is the risk-free asset. The return on the market has a mean of 12% and a standard deviation of 20%. The risk-free asset...
From our discussions of recent criticisms of research into cultural differences: Can we safely assume the existence of single national cultures? Is the influence of culture as an explanatory...
The following information was summarized from the balance sheets included in the Form 10-K for the 2015 fiscal year of Kellogg Company and Subsidiaries at January 2, 2016, and General Mills, Inc. and...
The units of an item available for sale during the year were as follows: There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the...
Sometimes people who act inappropriately are just trying to save their jobs and the company. How do you feel about those types of persons?
Putnam Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials1 pound plastic at $7.00 per pound ....$ 7.00 Direct labor1.5 hours at $12.00...
20. a) Choose an algebraic method to solve the following linear system. Explain why you chose this method. 2 3x 2 2y 3 7 3 + 2y = 5 b) Use the method you chose to solve the system. Check your...
An increase in the time between when an order to trade a security is placed and when the order is executed most likely indicates that market efficiency has: A. Decreased. B. Remained the same. C....
Fundamental analysts assume that markets are: A. Weak-form inefficient. B. Semistrong-form efficient. C. Semistrong-form inefficient.
The 300-g disk shown spins at the rate 1 = 750rpm, while axle AB rotates as shown with an angular velocity 2 of 6 rad/s. Determine the dynamic reactions at A and B. 200 m
If 4 sin(A)=5 and A is in the first quadrant, find cos()
Apply these questions to The Home Depot. What segment of the macro environment has the strongest impact (beneficial or detrimental) on this company's industry? Are all companies in the industry...
Discuss four broad activities that erode the value of the kenyan currency. State key financial disciples that would reduce the pressure for foreign currency
Describe the effect of each of the following bond features on the coupon rate of the bond. List any advantages or disadvantages of each feature. Any positive covenants. Also, discuss several...
1. (10 marks) Derive the explicit formula of the European call option on the maximal of 2 assets under the BSM model with payoff function given by f(S(T), S(T), K) = max(max(S(T), S(T)) K,0). -
While vacationing in Italy, you see on local TV one summer morning that the temperature will rise from the current 18C to a high of 39C. What is the corresponding increase in the Fahrenheit...
Coastal Refining Company operates a refinery with a distillation capacity of 12,000 barrels per day. As a new member of Coastal's management team, you have been given the task of developing a...
Should the objective of our economy be maximum efficiency? If your answer is yes, eff i ciency in what? If not, what should the objective be?
Discuss the conflict of interests among production, finance, accounting, and marketing executives. How does this conflict affect the operation of an individual firm? The economic system? Why does...
In the short run, competition sometimes leads to inefficiency in the operation of our economic system. Many people argue for monopoly in order to eliminate this inefficiency. Discuss this solution.
What is the order of method f? N = the parameter n. private static int f(int n). int r = 0; for (int i = 1; i < n; } } final int LIMIT } i++) { == i % 10; for (int k = 0; k < LIMIT; k++) { } return...
List the 3 requirements of the law passed by the state of Louisiana that were the subject of the challenged by Plessy.?
Given the data below answer the questions. High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost....

If a market is weak-form efficient but semistrong-form inefficient, then which of the following types of portfolio

Question:

Step by Step Answer:

C is correct If markets are not semistrongform efficient then fundamental anal...View the full answer

Investments Principles Of Portfolio And Equity Analysis

Students also viewed these Business questions