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.
Q2.
The example/s of Price-sensitive Information is/are:
Q3.
The trading window would open ________ hrs after the price sensitive information is made public.
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.
Q5.
Random walk model is a more restrictive version of the strong form of efficient markets.
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.
Q7.
Who shall be responsible for setting forth policies, procedures, monitoring adherence to the rules for the preservation of “Price Sensitive Information”?
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.
Q9.
The Compliance Officer has a critical role in implementing the Model Code in companies.
Q10.
Does efficiency in their stock prices affect corporate treasurers?
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.