Which of the following statements is false? If the SEC is successful in...

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Finance

  1. Which of the following statements is false?

If the SEC is successful in enforcing laws prohibiting insider trading, then the US market cannot be strong form efficient.

In a weak form efficient market technical analyst can produce positive abnormal returns consistently.

If a market is strong form efficient, it is also semi-strong form effiencient.

If a phenomenon violates weak form efficiency, it also violates semi- strong form efficiency.

  1. You have invested 60% of your portfolio in a stock with 56% standard deviation and the remaining in a stock with 34% standard deviation. The two stocks correlation is 0.2. What is the standard deviation of the portfolio?

47.20%

36.25%

38.69%

47.69%

  1. Cheryl has invested $600 in a mutual fund that charges 6% front end load. She plans to keep her investment in the fund for the next 10 years. What will be her average annual return, if she expects the fund to earn a 5% reported returning an average year?

4.35%

4.7%

-1.3%

5%

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