1. Which of the following are inconsistent with the weak form of the efficient market hypothesis?

Significant non-random movement.

Overreaction to the public release of new information.

Superior performance of professional traders.

All of the above.

Both a and b.

2. Which of the following is/are inconsistent with the semi-strong form of the efficient market hypothesis? [I] Significant non-random price movements [II] Price overreaction to the public release of new information [III] Superior performance of professional traders [IV] Abnormal profits from illegal insider trading

I and III

II and IV

II, III, and IV

I and II

All are inconsistent with the semi-strong form of the EMH

3. Which of the following are inconsistent with the semi-strong form of the efficient market hypothesis?

The January effect

Small firm effect

Mean reversion

All of the above

Both a and b

4. Studies by Ball and Brown (1968) and Fama, Fisher, Jensen, and Roll (1969) show that

There is some insider information that is reflected in stock prices.

Abnormal returns are not achieved due to public news

Stock prices fully react to earnings reports in less than a week.

None of the above.

5. Jensen's 1968 study on the performance of mutual funds indicates the following:

Mutual funds underperformed the market by approximately the amount they spent on expenses.

Mutual funds diversify inadequately.

When grouped in terms of their previous performance, mutual funds that did well in the first period also did well in the second period

Mutual funds do not outperform the market on average

None of the above