Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo
Principles of Finance

Video Activity

Principles of FinanceVideo Activity

Efficient Markets

1 .
In the efficient market hypothesis (EMH), describe what is meant by the terms weak form efficiency, semi-strong form efficiency, and strong form efficiency. How do these forms of market efficiency differ from each other, and what are their characteristics?
2 .
What is meant by the term random walk, and how does this concept relate to the EMH?

What Is Preferred Stock?

3 .
Discuss the relative risks of the following financial instruments and how they compare to each other: bonds, common stocks, and preferred stocks. How and why will these three investment types typically carry different levels of risk to an investor?
4 .
Discuss some of the important differences between preferred stocks and common stocks.
Order a print copy

As an Amazon Associate we earn from qualifying purchases.

Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-finance/pages/1-why-it-matters
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-finance/pages/1-why-it-matters
Citation information

© Jan 8, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.