Question: Detailed Answer please (ix) An efficient market is defined as one in which: (1 mark) A all participants have the same opportunity to make the
(ix) An efficient market is defined as one in which: (1 mark) A all participants have the same opportunity to make the make the same returns. B all participants have the same legal rights and transactions costs. C securities' prices quickly and fully reflect all available information. securities' prices are completely in line with the intrinsic value. D (x) The highest level of market efficiency is A weak form efficiency. semi-strong form efficiency. random walk efficiency. strong form efficiency. B C D [1 mark] (xi) Suppose the return from an investment has the following probability distribution. Return (%) Probability Expected values 0.2 1.6 0.2 8 10 12 14 A If the expected return of the investment is 11%, assess the risk(standard deviation) of the investment? B C D 1.48% 1.84% 0.5 0.1 C 3.4% 4.3 % 2.0 6.0 1.4 [1 mark] [2 marks]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
