Using publicly available information to generate abnormal return is possible in:

Group of answer choices

Weak form of market efficiency

Semi - strong form of market efficiency

Strong form of market efficiency

Flag question: Question 2

Question 2

Which of the following statement is least likely true?

Group of answer choices

Emotional biases are influenced by feelings and emotion.

Cognitive errors stem from statistical, information processing or memory errors.

Emotional biases can be corrected through better information or education.

Flag question: Question 3

Question 3

Hero Alam has been maintaining several savings account for his different needs such as retirement, vacation, education, etc. He is most likely exhibiting:

Group of answer choices

Framing bias

Conservatism bias

Mental accounting bias

Flag question: Question 4

Question 41 p

A declining short interest:

Group of answer choices

Reflects a negative investors sentiment

Neutral investors sentiment

Reflects a positive investors sentiment

Flag question: Question 5

Question 5

An increase in put/call ratio:

Group of answer choices

Reflects a positive investors sentiment

Reflects a negative investors sentiment

Neutral investors sentiment

Flag question: Question 6

Question 6

Which of the following statement is true?

Group of answer choices

Multifactor models are more robust relative to CAPM model because it uses multiple factors to determine asset price.

CAPM is a robust model relative to multifactor models because it uses the market factor to determine asset price.

Both CAPM and multifactor models are equally robust models.

Flag question: Question 7

Question 7

Assume stock ABC is being examined using a multi factor model. You are provided with the following information:

Expected return for ABC = 12%

GDP factor beta = 2

Interest rate factor beta = 2.5

Unexpected growth in GDP = 3%

Unexpected fall interest rates = - 2%

The required rate of return of ABC stock is closest to:

Group of answer choices

23.0%

13.0%

11.0%