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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.
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