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Advanced Wealth Management Course (IIBF) - Paper 3
Part I: Ch 7: Efficient Markets
Q
1
.
(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
Q
2
.
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
Q
3
.
The trading window would open ________ hrs after the price sensitive information is made public.
12 hrs
10 hrs
24 hrs
48 hrs
Q
4
.
(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
Q
5
.
Random walk model is a more restrictive version of the strong form of efficient markets.
True
False
Q
6
.
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
Q
7
.
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
Q
8
.
(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
Q
9
.
The Compliance Officer has a critical role in implementing the Model Code in companies.
True
False
Q
10
.
Does efficiency in their stock prices affect corporate treasurers?
True
False
Q
11
.
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