ESSENTIALS OF INVESTMENTS
(GLOBAL EDITION) CHAPTER 8
QUESTIONS WITH CORRECT ANSWERS
2026-2027
random walk - correct answer-the notion that stock price changesLare random and unpredictable
efficient market hypothesisL- correct answer-
the hypothesis that prices of securities fully reflect available information about securities
weak-form EMH - correct answer-
the assertion that stock prices already reflect all information contained in the history of past trading
semistrong-form EMH -Lcorrect answer-
the assertion thatLstock prices already reflect all publicly available information
strong-form EMH -Lcorrect answer-
the assertion that stock prices reflect all relevant information, including inside information
technical analysis - correct answer-
research on recurrent and predictable stock price patterns and on proxies for buy or sell pressure in the m
arket
resistance level - correct answer-a price level above which it isLsupposedly unlikely for a stock index to rise
support level -Lcorrect answer-
a price level below which it is supposedly unlikely for a stock or stock index to fail
fundamental analysis - correct answer-
research on determinants of stock value, such as earnings and dividend prospects, expectations for future
interest rates, and risk of the firm
(GLOBAL EDITION) CHAPTER 8
QUESTIONS WITH CORRECT ANSWERS
2026-2027
random walk - correct answer-the notion that stock price changesLare random and unpredictable
efficient market hypothesisL- correct answer-
the hypothesis that prices of securities fully reflect available information about securities
weak-form EMH - correct answer-
the assertion that stock prices already reflect all information contained in the history of past trading
semistrong-form EMH -Lcorrect answer-
the assertion thatLstock prices already reflect all publicly available information
strong-form EMH -Lcorrect answer-
the assertion that stock prices reflect all relevant information, including inside information
technical analysis - correct answer-
research on recurrent and predictable stock price patterns and on proxies for buy or sell pressure in the m
arket
resistance level - correct answer-a price level above which it isLsupposedly unlikely for a stock index to rise
support level -Lcorrect answer-
a price level below which it is supposedly unlikely for a stock or stock index to fail
fundamental analysis - correct answer-
research on determinants of stock value, such as earnings and dividend prospects, expectations for future
interest rates, and risk of the firm
