Purchase Solution

Market inefficiencies

Not what you're looking for?

Ask Custom Question

Market inefficiencies

True or false?

Your uncle made a killing in the stock market yesterday. This implies that markets are inefficient

Which answer is correct?

You discover that you can make above normal returns if you buy oil-company stock just before noon on any given trading day and then sell them immediately before the market closes that same day. Which of the following described the event?

a) this would be a violation of weak form efficiency
b) this would be a violation of all forms of market efficiency
c) this would be a violation of strong forms of efficiency
d) his would not be a violation of market efficiency
e) this would be a violation of semi-strong form efficiency

Purchase this Solution
Solution Summary

Quick explanations

Solution Preview

Market inefficiencies

True or false?

Your uncle made a killing in the stock market yesterday. This implies that markets are inefficient

False

Which answer is correct?

You discover that you can make above normal returns if you buy oil-company ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

View More Free Quizzes
Related BrainMass Solutions

  • Efficient market hypothesis and systematic risk

    Which of the following is true regarding the efficient market hypothesis? Answer: It proves that market inefficiencies do not exist in either the short-run or the long-run.

  • inefficiencies, environmental, effectiveness, interventions

    Inefficiencies: Market based instruments used by the government like taxes, tax exemptions and tradable permits only allow part reduction in environmentally harmful behavior.

  • Three Marketing inefficiencies

    Three Marketing inefficiencies are discussed in great detail in this solution.

  • market inefficiency and portfolio investments

    However, at the same time, he is also a firm believer in market inefficiencies.

  • The Silo Process

    The designing department does not consider market factors. The design department needs to consider which products are selling in the market.

  • Coase theorem discussed

    False. 6.Most economists prefer regulation to taxation because regulation corrects market inefficiencies at a lower cost than taxation does.

  • First of all, outsourcing will significantly boost company's operating margins and will help the company in overcoming huge losses due ot inefficiencies.

  • Financial crisis and american attitude

    And our government continues to finance and subsidize all of our inefficiencies (auto makers, airlines, railroads, steel produces, oil drillers, banks, etc)... Are we (our companies) becoming more or less competitive in the global market this way?

  • Growth, identification & profitability

    In case of companies the blame for low growth rates can be ascribed to inefficiencies and incompetence. On the other hand, GDP growth rate can be sustained in countries even when there are inefficiencies.

View More Related Solutions