Serial correlation

Multiple Choice

indicates that markets are semistrong form efficient.

coefficients tend to range between $\mathrm{.}75$ and $1.$

supports weak form efficiency.

tends to prove that markets are totally inefficient.

is best used to identify insider trading.

When computing the weights to be used in a project's WACC equation, an analyst should employ the

Multiple Choice

current market values of debt and equity.

average market weights of debt and equity that are expected over the project's life.

proportions of debt and equity that will finance the project.

average book weights of debt and equity that are expected over the project's life.

current book values of debt and equity.