Wealth Forum TV

Wealth Wealth Wealth Wealth Wealth Wealth

Advanced Wealth Management Course (IIBF) - Paper 3

Part I: Ch 7: Efficient Markets

Q1.

(I) A weak form of efficient markets is explained as one where the current market prices fully reflect all publicly available information. (II) A semi-strong form of efficient markets is explained as one where the current market prices fully reflect all the information contained in historical prices.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q2.

The example/s of Price-sensitive Information is/are:

Announcement of financial results

Amalgamation, mergers or takeovers

Issue of securities or buy-back of securities

Both (b) & (c)

All of the above

Q3.

The trading window would open ________ hrs after the price sensitive information is made public.

12 hrs

10 hrs

24 hrs

48 hrs

Q4.

(I) Random walk model assumes that successive returns are independent and that the returns are identically distributed over time. (II) A strong form of efficient markets is explained as one where the the current market prices fully reflect all the information – public or private.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q5.

Random walk model is a more restrictive version of the strong form of efficient markets.

True

False

Q6.

Analysts who prepare the research report of a listed company shall not trade in securities of that company for ______ days from preparation of such a report.

20 days

25 days

30 days

60 days

Q7.

Who shall be responsible for setting forth policies, procedures, monitoring adherence to the rules for the preservation of “Price Sensitive Information”?

Managing Director

Chief Executive Officer

Chief Financial Officer

Compliance Officer

Q8.

(I) In efficient markets, it is more difficult to earn super-normal profits. (II) Weaker form of efficient markets, offer scope for super-normal profits.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q9.

The Compliance Officer has a critical role in implementing the Model Code in companies.

True

False

Q10.

Does efficiency in their stock prices affect corporate treasurers?

True

False

Q11.

The Prohibition of Insider Trading Regulations, 1992, specified entities should frame a code of internal procedures and conduct on the lines of the Model Code.

True

False

wealthforumtv

Quick and Easy Guides