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I.True or False Questions 1.A security’s true value the price that

Question : I.True or False Questions 1.A security’s true value the price that : 1400439

 

I.True or False Questions

1.A security’s true value is the price that reflects investors’ estimates of the value of the cash flows they expect to receive in the future.

a.True

b.False

2.In an efficient capital market, security prices fully reflect the knowledge and expectations of all investors at a particular point in time.

a.True

b.False

3.If market prices reflect all relevant information about securities at a particular point in time, it is called operational efficiency.

a.True

b.False

4.If market prices reflect all relevant information about securities at a particular point in time, it is called informational efficiency.

a.True

b.False

5.If a market is strong-form market efficient, one would be able to beat the market with inside information.

a.True

b.False

6.Semistrong market efficiency implies that only public information that is available to all investors is reflected in a security’s market price.

a.True

b.False

7.Public stock markets in developed countries like the United States have strong-form of market efficiency.

a.True

b.False

8.The largest investors in corporate bonds are banks and state government agencies.

a.True

b.False

9.The largest investors in corporate bonds are life insurance companies and pension funds.

a.True

b.False

10.Most secondary market transactions for corporate bonds take place on the New York Stock Exchange.

a.True

b.False

 

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