FIN 3715 : Final Exam Notes
Document Summary
12/13 cumulative material questions broad/ 5 year questions. Risk premium on u. s. treasury bill is always 0. Use standard deviation to measure total risk (s. d. = total risk) Information symmetry is used to gain knowledge that others don"t know (unfair knowledge) Markets are efficient because most investors do not believe they are. Strong form efficient- it could not could not unfair returns. Two types of semi strong (fundamental and transactional pattern) Based on this fact, you would tend to argue that the financial markets are at best ______ form efficient: semi-strong, one year ago, you purchased a sock at a price of . 75. The stock pays quarterly dividends of sh. 35 per share. Today, the stock is worth . 25 per share. First place stock pays a quarterly dividend of $. 40 a share. Today, you sold all of your shares for . 12 per hare. The stock pays an annual dividend of $. 20 per share.
