Which two of the following are the most likely reasons why a stock price might not react at all on the day

The primary purpose of Blume's formula is to:    A.  compute an accurate historical rate of return. B.  determine a stock's true current value. C.  consider compounding when estimating a rate of return. D.  determine the actual real rate of return. E.  project future rates of return. Refer to section 12.5

43.

Which two of the following are the most likely reasons why a stock price might not react at all on the day that new information related to the stock issuer is released? I. insiders knew the information prior to the announcement II. investors need time to digest the information prior to reacting III. the information has no bearing on the value of the firm IV. the information was anticipated    A.  I and II only B.  I and III only C.  II and III only D.  II and IV only E.  III and IV only Refer to section 12.6

44.

Which one of the following is most indicative of a totally efficient stock market?    A.  extraordinary returns earned on a routine basis B.  positive net present values on stock investments over the long-term C.  zero net present values for all stock investments D.  arbitrage opportunities which develop on a routine basis E.  realizing negative returns on a routine basis Refer to section 12.6

45.

Which one of the following statements is correct concerning market efficiency?    A.  Real asset markets are more efficient than financial markets. B.  If a market is efficient, arbitrage opportunities should be common. C.  In an efficient market, some market participants will have an advantage over others. D.  A firm will generally receive a fair price when it issues new shares of stock. E.  New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock. Refer to section 12.6

46.

Efficient financial markets fluctuate continuously because:    A.  the markets are continually reacting to old information as that information is absorbed. B.  the markets are continually reacting to new information. C.  arbitrage trading is limited. D.  current trading systems require human intervention. E.  investments produce varying levels of net present values. Refer to section 12.6