Which of the following have been offered as factors contributing to the market crash of 1987?

Which of the following have been offered as factors contributing to the market crash of 1987? I. requirement for only a 10 percent cash payment to purchase a stock II. program trading III. irrational investors IV. preceeding bear market    A.  I and III only B.  I and IV only C.  II and III only D.  I, II, and III only E.  I, II, and IV only Refer to section 22.5

39.

Which one of the following statements related to market crashes is correct?    A.  Financial market crashes are unique to the United States. B.  A severe market decline tends to occur over a multi-day period. C.  Once the market finally crashed in 1929, stock prices began to slowly increase again. D.  The market crash of 1987 occurred on a day when trading volume was light indicating there were a limited number of irrational investors involved. E.  Actions in Washington, D.C. may have helped contribute to the market crash in 1929 but not to the 1987 crash. Refer to section 22.5

40.

Which one of the following statements is true?    A.  Market crashes tend to be accompanied by low market volume. B.  The Asian market crash was followed by a quick recovery. C.  The market crash of 1929 and the crash of 1987 are very similar in both the percentage decline in market value and in the ensuing market recovery. D.  Market crashes tend to follow market bubbles. E.  Market bubbles and crashes prove that financial markets are inefficient. Refer to section 22.5

41.

Historical returns support which one of the following statements?    A.  Financial markets are highly inefficient as suggested by behavioral finance. B.  Professional money managers tend to outperform the Vanguard 500 index fund about 55 percent of the time on average. C.  The longer the time span, the more apt a professional money manager is to outperform an index fund, such as the S&P 500. D.  Historical data supports the statement that arbitrage is unlimited and results in a totally efficient market. E.  The financial markets appear to be efficient because, on average, they outperform professional money managers. Refer to section 22.6

42.

Which of the following statements are correct? I. Many professional fund managers are paid well but fail to outperform as expected. II. Professional fund managers that have tenures in excess of ten years, tend to consistently outperform the market on a long-term basis. III. If a market is truly efficient, then all investments in that market are zero net present value opportunities. IV. Actively managing a fund appears to be the key to outperforming the market.    A.  I and III only B.  II and IV only C.  II and III only D.  I, II, and III only E.  I, II, III, and IV Refer to section 22.6