Investments in partnerships cannot be publicly traded

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1. Financing decisions are less easily reversed than investment decisions.

True

False

2. If markets are efficient in the semi-strong form, prices will reflect all historical price information.

True

False

3. Psychologists have observed that people tend to place too much weight on older information.

True

False

4. The random walk theory with its implication that stock price movements are like roulette outcomes, is a powerful indictment of our capital markets.

True

False

5. The evidence that stocks of companies with unexpectedly high earnings offer high returns for several months after the announcement violates weak form market efficiency.

True

False

6. In the United States most common shares are purchased by individuals.

True

False

7. Net stock issues by U.S. nonfinancial corporations are in most years small and negative.

True

False

8. Investments in partnerships cannot be publicly traded.

True

False

9. Debt ratios in the U.S. have generally increased slightly over the past 50 years.

True

False

10. A subordinated bond will generally be priced less than a secured bond.

True

False

11. Explain why a monopoly will rationally choose to produce less than the competitive solution.

Reference no: EM131446860

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