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Practice Questions
Can you beat the market? Practice Questions
1. Suppose some damaging information comes out about company Y this morning. The stock has been trading for a few hours today. When the bad news came out about the stock, what probably happened to the stock price after a few minutes?
*
a. It went up.
b. It went down.
c. It did not change.
2. According to the efficient-market hypothesis, should you sell your shares now, a few hours after the bad news emerged?
*
a. Yes.
b. No.
3. On average, buyers in the stock market have
*
a. More information than sellers do.
b. Less information than sellers do.
c. The same amount of information as sellers do.
4. Is it better to invest in a mutual fund that has performed well for the past 5 years in a row or one that has performed poorly for five years in a row?
*
a. Good past performance mutual fund.
b. Bad past performance mutual fund.
c. Can not be determined with the given information.
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Money Skills
Course
(10 videos)
Investing
How Expert Are Expert Stock Pickers?
Practice Questions
Can You Beat the Market?
Practice Questions
Investing: Why You Should Diversify
Practice Questions
Who Is More Rational? You or the Market?
Practice Questions
Real Estate
Econ Duel: Rent or Buy?
(Coming Soon) Real Estate
Career
The Economics of Choosing the Right Career
Practice Questions
(Coming Soon) Navigating Career-Related Data
Practice Questions
Saving
The Miracle of Compound Returns
Practice Questions
(Coming Soon) Simple Saving Tips
