industrial,railroad,financial,andutilitystocks b ANSWER: Insidertradingisdefinedas anindividualusingpropertradingrules anindividualbuyingorsellingusingnon-SECdisclosurerules anindividualbuyingorsellingonthebasisofmaterialnonpublicinformation azero-plusgame c ANSWER: TheU.S.financialmarketsaresaidtobehighlyinformationallyefficient.Thismeans theyprocessstocktradesaccuratelyandquickly themarketprovidesquickaccesstoafirm'sfinancialstatements theyquicklyreflectinformationrelevanttodeterminingstockvalue accuratestockquotesarequicklyavailabletoallinvestors c ANSWER: Expostreturnsdifferfrom returnsinthattheyrepresent valuesratherthan values. exante;estimated;actual expost;accounting;economic exante;actual;estimated exante;economic;accounting c ANSWER: marketefficiency. strong-form weak-form semiweak-form semistrong-form b ANSWER: any information. pastmarketprice marketvalue publiclyavailable private c ANSWER: Inanefficientcapitalmarket,allsecurityinvestmentswillhave: arequiredrateofreturnthatexceedsthecostofcapital
industrial,railroad,financial,andutilitystocks ANSWER: b Insidertradingisdefinedas anindividualusingpropertradingrules anindividualbuyingorsellingusingnon-SECdisclosurerules anindividualbuyingorsellingonthebasisofmaterialnonpublicinformation azero-plusgame ANSWER: c TheU.S.financialmarketsaresaidtobehighlyinformationallyefficient.Thismeans theyprocessstocktradesaccuratelyandquickly themarketprovidesquickaccesstoafirm'sfinancialstatements theyquicklyreflectinformationrelevanttodeterminingstockvalue accuratestockquotesarequicklyavailabletoallinvestors ANSWER: c Expostreturnsdifferfrom returnsinthattheyrepresent valuesratherthan values. exante;estimated;actual expost;accounting;economic exante;actual;estimated exante;economic;accounting ANSWER: c marketefficiency. strong-form weak-form semiweak-form semistrong-form ANSWER: b any information. pastmarketprice marketvalue publiclyavailable private ANSWER: c Inanefficientcapitalmarket,allsecurityinvestmentswillhave: arequiredrateofreturnthatexceedsthecostofcapital