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explain Small-firm Effect , Price/Earnings Effect, and January Effect
These anomalies have presented serious challenges to the
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- The absence of price movements indicates A. market stability B. market instability C. market efficiency D. Market inefficiency“An improvement in earnings growth can be achieved at the expense of market share (i.e., an unfavorable market share variance).” Do you agree and why or why not?Given the following anomalies, which is inconsistent with weak-form market efficiency? Day-of-the-week effect. Value effect. Earnings surprise. Stock split effect. All of the above answers are inconsistent with weak-form market efficiency. None of the above answers is consistent with weak-form market efficiency.
- Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. Seasonal factors can distort data. Market data is not sufficiently considered. Window dressing might be in effect.Which TWO of the following are possible effects of rising prices upon financial statements? Understatement of capital employed Overstatement of capital employed Overstatement of profits Understatement of profitsGive an example of a strength and a weakness of the accounting rate of return approach.
- Price weighted indices have been criticized because they introduce adownward bias by reducing the weight of growing companies whose stocksplit. What does this mean and why does the underweighting occur?Which tranches in a CMO issue are least subject to price variances related to changes in market interest rates? Why?what is not a factor in producing earning forecasts?
- In a hyperinflationary economy, amounts not expressed to the measuring unit current at the end of reporting period are restated by applying: a. General price index b. Specific price index c. Both general price index and specific price index d. Either general price index or specific price indexWhich one of the following factors makes it difficult for financial analysts to use trend analysis? Multiple Choice Decreasing costs and prices. Deflation. An aging asset base. A relatively new asset base.The pricing efficiency of financial markets can be expected to decrease if the cost of skillful financial analysis increases. True False
