1. The market return on the U.S. Treasury bill is generally used as the measure of the:

1) Real rate of market return.

2) Real rate of return on a risk-free investment.

3) Nominal risk premium rate of return.

4) Risk-free rate of return.

5) Risk premium on government bonds.

2. If capital markets are semistrong form efficient, then ____________ .

1) all public information is rapidly incorporated into security prices

2) it is possible to profit regularly from publicly available information

3) prices will adjust slowly when reacting to new information

4) historical price trends will give you a good idea of where prices are headed in the future