Week 9 Quiz 9

Rational theories that attempt to explain stock market returns consider: all are correct systematic risk unsystematic risk systemic risk

systematic risk

Value investors are criticized for investing in monopolies and very mature markets, not contributing to development True / False

True

Most active investments underperform due to fees and skills vs luck True / False

True

Value investors always beat the market True / False

False

Value investing considers Mr. Market, competitive advantages and a margin for error in the analysis of fundamentals True / False

True

As per Efficient markets, when the market has complete or at least adequate information, the prices are correct, reasonable, appropriate, with the stock price reflecting whatever is knowable. True / False

True

The Fama 3 factor model is based on efficient markets but includes space for behavioral factors True / False

True

The most successful value investor of all time is John Templeton Warren Buffett Peter Lynch George Soros

Warren Buffett

The origin of value investing is in a) Columbia University b) Harvard University c) Stanford University d) XIX century Europe

a) Columbia University