Market Efficiency Tests

Q1. Nifco Co. omissions to endow in a new purpose in a consolidate toil. The purpose was ruled and announced yesterday which has a cheerful forthcoming landscape for the audience. As early the endowment sentence was announced the distribute worth in the dispense increased significantly. This perfect diversify indicates? (MRQ) A injudicious dispense A semi-cogent dispense It was a one-off event A cogent dispense (2 marks) Q2. Guillermo omissions to originate a policy & institute trade models by plotting the distribute worth movements on its computer. He believes the dispense is? (MCQ) Semi-Efficient Completely Inefficient Completely Efficient The injudicious fashion of fruitful (2 marks) Q3. Which of the forthcoming are the benefits to a entirely fruitful principal dispense from an endowor's summit of aim? (MRQ) The endowor has more faith in its endowment Prices of distributes may be undervalued It reflects the director's achievement in the distribute worth The distribute worth trash uniform (2 marks) Q4. What achieve be your understanding of the dispense for obtaining exceptional frame by? (P;D) Dealing promptly following a while an internally peculiar Using gone-by incline segregation Using modern advantageous financial statements INEFFICIENT STRONG WEAK SEMI - STRONG (2 marks) Q5. Which of the forthcoming is a element of an fruitful dispense? (MCQ) No separate can feel a dispense engrossment Transaction require in the dispense is violent Information is advantageous but at a bulky expense The distributeholders omission a conspicuous yield (2 marks) Q6. Which image of counsel is advantageous for the endowor if? (HA) A indisputtalented NPV endowment purpose known in the ultimate year's financial statements PAST INFORMATION PUBLIC INFORMATION INSIDER INFORMATION A consultation part of a audience suggesting his spouse buy the audience's distributes antecedently the annual AGM PAST INFORMATION PUBLIC INFORMATION INSIDER INFORMATION (2 marks) Q7. WE Co. is regarding behest for EW Co. Both the entities are common listed entities following a while distributes issued in the garment dispense. Both entities distribute worths counteract straightly to any newly advantageous counsel. Which of the forthcoming is mitigated to be needed to apportion WE Co. to fabricate unfailing the bid submitted is not too violent? (MCQ) Aging segregation of Receivables The most modern financial statements The estimated exhibit treasure due to the merger No counsel needed as the dispense is injudicious (2 marks) Q8. Select the embezzle supposition. (HA) Share worth expects to waver adjacent its inward treasure TECHNICAL ANALYST RANDOM WALK FUNDAMENTAL ANALYSIS Past distribute worth patterns usually reproduce TECHNICAL ANALYST RANDOM WALK FUNDAMENTAL ANALYSIS The treasure of a distribute is the discounted exhibit treasure of all forthcoming expected dividends on the distribute, discounted at the distributeholders' require of principal. TECHNICAL ANALYST RANDOM WALK FUNDAMENTAL ANALYSIS (2 marks) Q9. Select the embezzle factors which interest the deportment of distribute worth. (MRQ) Investors speculation Market principalization Pricing anomalies Availtalented counsel (2 marks) Q10. Which of the forthcoming TWO reasons would neutralize counsel to be preparedly unadvantageous for any unlisted audience? (MRQ) A injudicious curb environment Audited financial statements In consent following a while the decision Record maintenance is detailed (2 marks) Market Efficiency (Answers) Q1. A semi-cogent dispense A cogent dispense It is a semi-cogent ; a cogent dispense as the distribute worths counteracted at-once which indicates that all counsel was strengthend at-once. Q2. B If regarding injudicious fashion, all gone-by counsel is already strengthend. This resources that Guillermo seems that dispense is entirely undecided. Q3. The endowor has more faith in its endowment, an fruitful dispense achieve apportion endowors to assess their endowment well as counsel achieve be advantageous in the dispense, forthcoming a (Benefit) Prices of distributes may be undervalued, all counsel achieve be strengthend ; all distribute worths achieve be as per dispense It reflects the director's achievement in the distribute worth, the directors pristine extrinsic is to maximize distributeholders opulence so achieve be talented to strengthen all counsel and results reflected in the distribute worth, forthcoming (Benefit) The distribute worths dwell uniform, as all counsel is strengthend in an fruitful dispense the distribute worth achieve waver if any new counsel is advantageous Q4. Dealing promptly following a while an internally peculiar SEMI-STRONG Using gone-by incline segregation INEFFICIENT Using modern advantageous financial statements WEAK Q5. A No separate can feel a dispense engrossment (Feature) Transaction require in the dispense is not so violent as to cow trading significantly Information is advantageous but at a no or very low expense The distributeholders omission a conspicuous yield (Impact of the fruitful dispense) Q6. A indisputtalented NPV endowment purpose known in the ultimate year's financial statements PAST INFORMATION A consultation part of a audience suggesting his spouse buy the audience's distributes following the annual AGM INSIDER INFORMATION Q7. C If WE Co. pays more than EW Co.'s vulgar treasure + exhibit treasure of the merger then it achieve feel compensated a worth which generates a denying NPV. Q8. Share worth expects to waver adjacent its inward treasure RANDOM WALK Past distribute worth patterns usually reproduce TECHNICAL ANALYST The treasure of a distribute is the discounted exhibit treasure of all forthcoming expected dividends on the distribute, discounted at the distributeholders' require of principal. FUNDAMENTAL ANALYSIS Q9. All the over factors interest the distribute worth Q10. A injudicious curb environment (Reason) Unaudited financial statements In consent following a while the decision (Reason) Record maintenance is near detailed