34. Suppose that, after conducting an analysis of past stock prices, you come up with the...

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34. Suppose that, after conducting an analysis of past stock prices, you come up with the following observations. Which would appear to contradict the weak form of the efficient market hypothesis? (a) One could have made superior returns by buying stock after a 10% rise in price and selling after a 10% fall. (b) The correlation between the return during a given week and the return during the following week is zero. (c) The average rate of return is significantly greater than zero. (d) One could have made higher-than-average capital gains by holding stocks with low dividend yields. 35. ART has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.40. Its earnings this coming year will be $4 per share. Investors expect a 11% rate of return on the stock. What price do you expect ART shares to sell for in 5 years? (a) $108.22 (b) $124.55 (c) $117.55 (d) $161.09 34. Suppose that, after conducting an analysis of past stock prices, you come up with the following observations. Which would appear to contradict the weak form of the efficient market hypothesis? (a) One could have made superior returns by buying stock after a 10% rise in price and selling after a 10% fall. (b) The correlation between the return during a given week and the return during the following week is zero. (c) The average rate of return is significantly greater than zero. (d) One could have made higher-than-average capital gains by holding stocks with low dividend yields. 35. ART has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.40. Its earnings this coming year will be $4 per share. Investors expect a 11% rate of return on the stock. What price do you expect ART shares to sell for in 5 years? (a) $108.22 (b) $124.55 (c) $117.55 (d) $161.09