Question 1 (1 point)

Semistrong form efficiency implies:

a) All historical market information, including prices and volume, is included in the price.

b) All information, both public and private is already incorporated in the price.

c) Superior returns may be obtained by the analysis of past prices and volumes.

d) All public information is already incorporated in the price.

Question 2 (1 point)

Which of the following is NOT an empirical challenge to market efficiency?

	a) small stocks tend to outperform large stocks
	b) value stocks tend to outperform growth stocks
	c) investors appear to react slowly to earnings announcements
	d) stocks sometimes return more than their expected returns, and at other times return less than their expected returns

Question 3 (1 point)

Which of the following should not lead to an increase in market efficiency?

	a) Information is available faster
	b) Information is available at a lower cost
	c) There are more assets (for example, number of stocks) in the market for the same number of market participants
	d) There are more participants in the markets for the same number of assets

Question 4 (1 point)

An exchange rate regime is one under which rates of exchange are determined in the market on the basis of predominantly private transactions is called:

	a) Floating rates
	b) Pegged rates
	c) Private rates
	d) Fixed rates