Tests of the EMH suggest that:
I). if technical trading rules can predict profit opportunities, they are very short lived
II). very few fundamental indicators offer forecasting power
III). despite the ability of Value Line forecasts to predict stock returns, trading profits are unlikely after adjusting the returns for transactions costs

• A.I and II.
• B.I and III.
• C.I, II and III.

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Which of the following will cause aggregate demand to increase?

• A.an increase in the money supply
• B.an increase in taxes
• C.a decrease in the price level

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If prices of a product are falling the use of LIFO rather than FIFO will lead to:

• A.higher working capital and higher net income.
• B.higher working capital and lower net income.
• C.lower working capital and higher net income.

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Barry Call has supervisory responsibility at DGR Brokerage House. Paul Harry an employee of DGR has committed an offence of the Code and Standards. What course of action should Barry follow in terms of Standard IV (C): Responsibilities of Supervisors, with respect to this violation?

• A.Barry must initiate an investigation within a 90 day period to ascertain the extent of the wrong doing and pending the outcome of the investigation Barry should take all steps to ensure that the violation will not be repeated.
• B.Barry must immediately initiate an investigation to ascertain the extent of the wrong doing and pending the outcome of the investigation Barry should take all steps to ensure that the violation will not be repeated.
• C.Barry must immediately initiate an investigation to ascertain the extent of the wrong doing and no further action is needed.

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A cup contains 4 pennies and 6 dimes. Three coins are selected with replacement from the cup.
What is the probability that exactly 2 of the coins selected were pennies?

• A.0.288
• B.0.432
• C.0.712

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