In Order to Test the Weak Form of the Efficient-Market

question 25

Multiple Choice

In order to test the weak form of the efficient-market hypothesis, researchers have used the following methods except

• A)estimation of the serial correlation (autocorrelation)for securities and markets.
• B)measurement of the profitability of trading rules used by technical analysts.
• C)measurement of how rapidly security prices adjust to different news items.
• D)All of the options are methods used for testing weak-form market efficiency.

Grasp the principles of effective international diversification.

Know the definitions and purposes of ADRs and WEBS.

Analyze the appropriateness of using the S&P 500 as a proxy for the global market portfolio.

Understand the role of top executives in facilitating cooperation within an organization.

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Definitions:

Perceptual Activities

are processes through which individuals interpret and make sense of their sensory input from the environment.

Person's Actions

The deeds or acts carried out by an individual, which may reflect their intentions, decisions, or reaction to outside forces.

Social Perception

The process of interpreting and understanding the behavior and characteristics of others in the social environment.

Social Identity

An individual’s sense of who they are based on their group memberships, such as national, social, or ethnic groups.