The U.S. Securities and Exchange Commission periodically charges individuals with insider trading and claims

You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information is not available to the general public. This neighbor continually brags to you about the profits he earns on these trades. Given this, you would tend to argue that the financial markets are at best _____ form efficient.    A.  weak B.  semiweak C.  semistrong D.  strong E.  perfect Refer to section 12.6

52.

The U.S. Securities and Exchange Commission periodically charges individuals with insider trading and claims those individuals have made unfair profits. Given this, you would be most apt to argue that the markets are less than _____ form efficient.    A.  weak B.  semiweak C.  semistrong D.  strong E.  perfect Refer to section 12.6

53.

Individuals who continually monitor the financial markets seeking mispriced securities:    A.  earn excess profits over the long-term. B.  make the markets increasingly more efficient. C.  are never able to find a security that is temporarily mispriced. D.  are overwhelmingly successful in earning abnormal profits. E.  are always quite successful using only historical price information as their basis of evaluation. Refer to section 12.6

54.

One year ago, you purchased a stock at a price of $33.49. The stock pays quarterly dividends of $0.20 per share. Today, the stock is selling for $28.20 per share. What is your capital gain on this investment?    A.  -$5.49 B.  -$5.29 C.  -$4.76 D.  -$4.16 E.  -$5.09 Capital gain = $28.20 - $33.49 = -$5.29