10. In recent years, every careful study that has been undertaken has found empirical support for the efficient markets hypothesis (EMH).

a. True

b. False

11. Because of security regulations, Internet sources such as brokerage firms, Yahoo, and Dow Jones are prohibited from updating stock prices during the day. As a result, the only time you can see stock prices quoted on the Internet is after the stock market has closed.

a. True

b. False

12. If a stock trades infrequently and has above average volatility, we would expect it to have a smaller than average bid-ask spread.

a. True

b. False

13. In the years since 1995, every time the market earned a negative total return, it earned a positive total return the following year.

a. True

b. False

14. Because they often invest in risky assets, hedge funds have traditionally been among the most highly regulated financial institutions.

a. True

b. False