26. Some studies have attempted to determine whether it is possible to predict future returns for a stock based on publicly available quarterly earnings reports. The results of these studies indicate

Stock prices adjust to reflect quarterly earnings reports.

Stock prices do not adjust to reflect quarterly earnings reports.

Support for the semistrong EMH.

Stock prices adjust if earnings reports are released in January.

Stock prices do not adjust if earnings reports are released in January.

27. Which is not an implication of the EMH?

To do superior industry or company analysis you must understand the variables that affect returns and do a superior job of estimating these variables.

Aggregate market analysis that involves very detailed analysis of reliable historical economic data should outperform a simple buy-and-hold policy.

A superior analyst is one who can consistently select stocks that provide positive abnormal returns on a risk-adjusted basis.

If a portfolio manager does not have any superior analysts, he/she should consider investing funds in an index fund.

If a portfolio manager has some superior analytical skills, they should be encouraged to concentrate in second tier stocks which have liquidity, but may be neglected.

37.

A price range at which technicians feel that a significant increase in the price of the stock will be resisted is referred to as

		Supply threshold.
		Support level.
		Short interest level.
		Advancement level.
		Resistance level.