Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 169 views

    Multiple Choice Questions 1 The Random Walk Theory Suggests A

    Uploaded by

    trilocksp Singh
    The random walk theory suggests that it is extremely difficult to consistently pick winning stocks without insider information. The document includes 8 multiple choice questions regarding stock prices, P/E ratios, budget deficits, national saving, and the effects of government surpluses and deficits. It provides a stock table for General Electric and Hewlett-Packard to help answer some of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Multiple Choice Questions 1 The Random Walk Theory Suggests A

    Uploaded by

    trilocksp Singh
    169 views2 pages
    The random walk theory suggests that it is extremely difficult to consistently pick winning stocks without insider information. The document includes 8 multiple choice questions regarding stock prices, P/E ratios, budget deficits, national saving, and the effects of government surpluses and deficits. It provides a stock table for General Electric and Hewlett-Packard to help answer some of the questions.

    Original Description:

    Upload

    Original Title

    Multiple Choice Questions 1 the Random Walk Theory Suggests A

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The random walk theory suggests that it is extremely difficult to consistently pick winning stocks without insider information. The document includes 8 multiple choice questions regarding stock prices, P/E ratios, budget deficits, national saving, and the effects of government surpluses and deficits. It provides a stock table for General Electric and Hewlett-Packard to help answer some of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    169 views2 pages

    Multiple Choice Questions 1 The Random Walk Theory Suggests A

    Uploaded by

    trilocksp Singh
    The random walk theory suggests that it is extremely difficult to consistently pick winning stocks without insider information. The document includes 8 multiple choice questions regarding stock prices, P/E ratios, budget deficits, national saving, and the effects of government surpluses and deficits. It provides a stock table for General Electric and Hewlett-Packard to help answer some of the questions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Solved: Multiple Choice Questions 1 The random walk

    theory suggests a
    Multiple Choice Questions 1 The random walk theory suggests a

    Multiple Choice Questions:


    1. The random walk theory suggests?
    a. That stock prices fluctuate in highly predictable ways.
    b. That it is extremely difficult without inside information to consistently pick winners in the stock
    market.
    c. That if stock price fluctuations are scrutinized carefully, one can consistently pick winners in
    the stock market.
    d. That information filters sufficiently slowly that one can consistently profit by trading on newly
    released information.
    2. A relatively high P/E ratio?
    a. May indicate that investors expect future earnings to rise.
    b. May indicate that investors expect future earnings to fall.
    c. Indicates that a stock is undervalued.
    d. Indicates that the stock is trading at a price that is low relative to earnings.
    3. A stock’s P/E ratio?
    a. Is calculated by dividing the 52-week high price by the earnings per share of the firm over the
    past year.
    b. Is calculated by dividing the 52-week low price by the earnings per share over the past year.
    c. Indicates that the stock is overvalued if the P/E ratio is relatively low.
    d. Indicates that investors may expect future earnings to fall if the P/E ratio is relatively low.
    Use the following stock table to answer the next three questions (4–6).

    4. If a typical P/E ratio for companies that supply services and products comparable to General
    Electric is 20, then?
    a. Purchasing General Electric stock at this time cannot possibly be a wise decision.
    b. GE’s P/E ratio suggests that its stock may be overvalued at this time.
    c. GE’s P/E ratio suggests that its stock may be undervalued at this time.
    d. GE’s P/E ratio suggests that investors may expect the stock price to rise in the near future.
    e. Either b or d could be indicated by the information in the table.
    5. If a typical P/E ratio for companies that supply services and products comparable to Hewlett-
    Packard is 40, then?
    a. Purchasing Hewlett-Packard stock at this time cannot possibly be a wise decision.
    b. Hewlett-Packard’s P/E ratio suggests that its stock may be overvalued at this time.
    c. Hewlett-Packard’s P/E ratio suggests that its stock may be undervalued at this time.
    d. Hewlett-Packard’s P/E ratio suggests that investors may expect the stock price to rise in the
    near future.
    e. Either c or d is indicated by the information in the table.
    6. Based on the information in the preceding table, which of the following is true?

    Reach out to freelance2040@yahoo.com for enquiry.


    a. Both General Electric and Hewlett-Packard stocks increased in price compared to the
    previous day’s close.
    b. Both General Electric and Hewlett-Packard stocks decreased in price compared to the
    previous day’s close.
    c. General Electric stock decreased in price from the previous day’s close, while Hewlett-
    Packard’s stock increased in
    price from the previous day’s close.
    d. Both General Electric and Hewlett-Packard stocks are trading near their 52-week highs.
    7. When the government runs a budget deficit, which of the following would have to be
    negative?
    a. Public saving
    b. Private saving
    c. National saving
    d. Investment
    8. Other things equal, if the government runs a budget surplus, it will tend to?
    a. Increase national saving.
    b. Decrease the real interest rate.
    c. Increase the amount of investment.
    d. Increase economic growth.
    e. Do all of theabove.

    Multiple Choice Questions 1 The random walk theory suggests a

    ANSWER
    https://solvedquest.com/multiple-choice-questions-1-the-random-walk-theory-suggests-a/

    Reach out to freelance2040@yahoo.com for enquiry.


    Powered by TCPDF (www.tcpdf.org)

    You might also like