FIN 370 Final Exam

Which of the following is a characteristic of an efficient market?

a.      Small number of individuals.

b.      Opportunities exist for investors to profit from publicly available information.

c.       Security prices reflect fair value of the firm.

d.      Immediate response occurs for new public information.


1.            Diversification increases when ________ decreases.

a.      variability

b.      return

c.       risk

d.      a  and c

e.       all of the above

Powered by