1. If the capital markets are efficient, then the sale or purchase of any security at the prevailing market price is:  A. Always a positive NPV transaction B. Generally a zero NPV transaction C. Is always a negative NPV transaction D. None of the above Select one: A B C D 2. The statement that stock prices follow a random walk implies that: I) Successive price changes are independent of each other. II) Successive price changes are positively related III) Successive price changes are negatively related IV) The autocorrelation coefficient is either +1 or -1  A. I only B. II and III only C. IV only D. III only Select one: A B C D 3. Stock price cycles or patterns self-destruct as soon as investors recognize them through:  A. stock market regulation by the Securities and Exchange Commission (SEC) B. price fixing by the specialists on New York Stock Exchange C. trading by the investors D. none of the above Select one: A B C D 4. Different forms of market efficiency are: I) Weak form II) Semi-strong form III) Strong form  A. I only B. I and II only C. I and III only D. I, II and III Select one: A B C D 5. If the efficient market hypothesis holds, investors should expect: I) to receive a fair price for their security II) to earn a normal rate of return on their investments III) to be able to pick stocks that will outperform the market  A. I only B. II only C. III only D. I and II only Select one: A B C D 6. Which of the following is a statement of weak form efficiency? I) If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns II) If the markets are efficient in the weak form, then prices will adjust immediately to public information III) If the markets are efficient in the weak form, then prices reflect all information  A. I only B. II only C. II and III only D. III only Select one: A B C D 7. If the weak form of market efficiency holds, then: I) Technical analysis is useless II) Stock prices reflect information contained in past prices III) Stock price changes follow a random walk  A. I only B. I and II only C. I, II, and III D. I and III only Select one: A B C D 8. Which of the following is a statement of semi-strong form efficiency? I) If the markets are efficient in the semi-strong form then prices will adjust immediately to public information II) If the markets are efficient in the semi-strong form then prices reflect all information III) If the markets are efficient in the semi-strong form then prices will adjust to newly published information after a long time delay  A. I only B. II only C. II and III only D. III only Select one: A B C D 9. Strong form market efficiency states that the market incorporates all information in the stock price. Strong form efficiency implies that: I) An investor can only earn risk-free rates of return II) An investor can always rely on technical analysis III) An insider or corporate officer cannot outper ...

1. 1. If the capital markets are efficient, then the sale or purchase
of any security at the prevailing market price is:
A. Always a positive NPV transaction
B. Generally a zero NPV transaction
C. Is always a negative NPV transaction
D. None of the above
Select one:
A
B
C
D
2. The statement that stock prices follow a random walk
implies that:
I) Successive price changes are independent of each other.
II) Successive price changes are positively related
III) Successive price changes are negatively related
IV) The autocorrelation coefficient is either +1 or -1
A. I only
B. II and III only
C. IV only
D. III only
Select one:
A
B
C
D
3. Stock price cycles or patterns self-destruct as soon as
investors recognize them through:
A. stock market regulation by the Securities and Exchange
Commission (SEC)
B. price fixing by the specialists on New York Stock Exchange
C. trading by the investors

2. D. none of the above
Select one:
A
B
C
D
4. Different forms of market efficiency are:
I) Weak form
II) Semi-strong form
III) Strong form
A. I only
B. I and II only
C. I and III only
D. I, II and III
Select one:
A
B
C
D
5. If the efficient market hypothesis holds, investors should
expect:
I) to receive a fair price for their security
II) to earn a normal rate of return on their investments
III) to be able to pick stocks that will outperform the market
A. I only
B. II only
C. III only
D. I and II only
Select one:
A
B
C
D

3. 6. Which of the following is a statement of weak form
efficiency?
I) If markets are efficient in the weak form, then it is
impossible to make consistently superior profits by using
trading rules based on past returns
II) If the markets are efficient in the weak form, then prices will
adjust immediately to public information
III) If the markets are efficient in the weak form, then prices
reflect all information
A. I only
B. II only
C. II and III only
D. III only
Select one:
A
B
C
D
7. If the weak form of market efficiency holds, then:
I) Technical analysis is useless
II) Stock prices reflect information contained in past prices
III) Stock price changes follow a random walk
A. I only
B. I and II only
C. I, II, and III
D. I and III only
Select one:
A
B
C
D
8. Which of the following is a statement of semi-strong form
efficiency?
I) If the markets are efficient in the semi-strong form then

4. prices will adjust immediately to public information
II) If the markets are efficient in the semi-strong form then
prices reflect all information
III) If the markets are efficient in the semi-strong form then
prices will adjust to newly published information after a long
time delay
A. I only
B. II only
C. II and III only
D. III only
Select one:
A
B
C
D
9. Strong form market efficiency states that the market
incorporates all information in the stock price. Strong form
efficiency implies that:
I) An investor can only earn risk-free rates of return
II) An investor can always rely on technical analysis
III) An insider or corporate officer cannot outperform the
market by trading on the inside information
A. I only
B. II only
C. III only
D. I, II, and III
Select one:
A
B
C
D
10. If the markets are efficient, which of the following
investors should have above normal return on assets over time?
A. Those who choose their stocks by throwing darts at a list of

5. stocks found in the financial pages of a newspaper.
B. Analysts who spend considerable time evaluating the best
stocks to buy.
C. Mutual fund managers who manage other people's money for
a living.
D. None of the above
Select one:
A
B
C
D
11. One important implication of the efficient markets
hypothesis is that:
A. investors should hold a diversified portfolio and avoid active
trading.
B. investors can benefit by engaging in day trading.
C. investors should trade actively help to ensure the highest
overall gain in their portfolios.
D. all of the above.
Select one:
A
B
C
D
12. Abnormal stock return is calculated as:
A. actual stock return less expected stock return
B. return on stock less return on market
C. return on stock for the current period less return on stock for
the previous period
D. none of the above
Select one:
A
B
C

6. D
13 . Studies on behavioral finance have been developed using:
A. market evidence
B. economic evidence
C. psychological evidence
D. none of the above
Select one:
A
B
C
D
14. Investors are particularly averse to the possibility of even a
very small loss and need a high return to compensate for it.
Such a concept is related to what theory?
A. Market efficiency theory
B. Random walk theory
C. Convergence trading
D. Prospect theory
Select one:
A
B
C
D
15. For a corporation, financing decisions are harder to reverse
than investment decisions.
Select one:
True
False

7. Sheet1LearyMonth of April InventoryEnding Inventory and
COGSOption #1- Mod 4- Protfolio Project Student
TemplateDateInentory Activity# Units$ CostTotal Cost1-
AprBriginning Inventory (BI)5-AprPurchases (Transferred in or
TI)10-AprPurchases (Transferred in or TI)15-AprPurchases
(Transferred in or TI)20-AprPurchases (Transferred in or TI)25-
AprPurchases (Transferred in or TI)Q1: TOTALGoods Avail for
Sale(units and $)Given: Units sold (transferred out or TO)
+=MustKnow:Inventory Formula=Units =EI=Q2: Average cost=
EI= Good available for sale$ / Goods available for sale units=
EI= units in inventory * average cost= COGS= BI + TI - EIBI +
TI = $4,200; EI = $3,500Q3: LIFO=First-In, Still-Here for EI
= EI= COGS= BI + TI - EIBI + TI = EI = Q4:
FIFO=Last-In, Still- Here for EI= EICOGS= BI + TI - EIBI + TI
= EI = Question 5- Show work speadsheet on how you
calculated the numbers
Sheet2
Sheet3
1
2
3
4
5
6
7
8
9
A
B
Leary
Month of April Inventory
Option #1- Mod 4- Protfolio Project Student Template
Date
Inentory Activity
1-Apr

8. Briginning Inventory (BI)
5-Apr
Purchases (Transferred in or TI)
10-Apr
Purchases (Transferred in or TI)
15-Apr
Purchases (Transferred in or TI)
20-Apr
Purchases (Transferred in or TI)
Option #1: Cost of Ending Inventory
During April, Leary Company sold 1,000 units of Product Q.
Product Q’s beginning inventory and purchases during the
month are shown below. (Assume the periodic inventory system
is used.)
Assignment Template
April 1
Beginning inventory
200 units @ $1
April 5
Purchases
200 units @ $2
April 10
Purchases
200 units @ $3
April 15
Purchases
200 units @ $4
April 20
Purchases
200 units @ $5
April 25
Purchases
200 units @ $6
Required:
1. Compute the cost of goods sold in both units, and cost and

9. compute the number of units in the ending inventory.
2. Compute the cost of the ending inventory under average cost.
3. Compute the cost of the ending inventory under LIFO.
4. Compute the cost of the ending inventory under FIFO.
5. Explain how you calculated each answer and include your
explanations in the Excel worksheet that you submit.
Instructions:
Complete this assignment using an Excel spreadsheet, and date
and explain each entry on your deliverable.
Critical Thinking Assignment (60 Points)
Important! Read First
Choose one of the following two assignments to complete this
week. Do not do both assignments. Identify your assignment
choice in the title of your submission. When you are ready to
submit, click the Module 5 Critical Thinking header on the
Assignments page to upload the document.
Follow these directions to set up QuickBooks™ for the Module
5 Critical Thinking Assignment:
1.
1. Load the QuickBooks™ disc.
2. Enter the information found on the disc sleeve when asked
for the license and product number.
3. Once QuickBooks™ is loaded, reboot your computer.
4. Once the computer is re-booted, click the icon entitled
QuickBooks™, go through the agreement question(s), select
“create a new company” and then select “express set-up.”
5. Enter the company name in your assignment option choice.
6. Enter the industry: “accounting and bookkeeping.”
7. Enter the type of company: “sole proprietorship.”
8. Enter the Tax ID number as 99-1234567.
9. Select “no employees but might have in the future.”
10. Enter your address, phone number, and CSU-Global student
email address, and then enter www.csuglobal.edu for the
website.

10. 11. Wait for QuickBooks™ to create your company.
12. Select the right-hand corner icon called “start working.”
13. Select “Home” from the list in the left-hand column. The
home page will appear as follows:
(Source: http://topnotchbookkeeping.com/2011/05/quickbooks-
homepage-is-it-yours/
· Among the icons on the screen (i.e., Vendors, Customers,
Employees, Company, and Bank), select “Chart of Accounts”
under Company and a list of the company accounts will appear.
· In the top ribbon click “Edit” (second icon over from the top),
and then from the drop–down menu select “add a new account.”
· Add a cash account for “CDE Bank” as a bank account, and a
loan account for “ABC Bank.”
· From the other account drop-down menu, add other current
asset account called “office supplies.”
Important items to remember:
· Do not forget to hit ‘save and close’ after you input and file
and backup your company’s information often.
· Always check to be sure your input dates are last month’s
date. It is very important to do that, especially if you cannot
find an input.
Option #1:Practice in QuickBooks™: The Case of Sam’s
Company
Continue to use your QuickBooks™ access. Return to the
QuickBooks™ home page.
For 1/1/2015:
Go to home, then select chart of accounts, and then select
opening equity and title equity as EQUITY.
Deposit $150,000 to the CDE Bank Account (Quick add: Other).
Select “Banking Section” from the icons on the screen (i.e.,
Vendors, Customers, Employees, Company, and Bank). All five
transactions that follow will be completed in the CDE Bank

11. Account in this section.
For 1/3/2015:
Select “write a check” and a picture of a check will appear.
On check, write: Pay-to-the-order-of: Weiss (Quick add:
Vendor) for $50,000.
In memo, write: For purchase of plant and equipment.
Account is Furniture and Equipment.
For 1/10/2015:
Select record a deposit of $40,000 from ABC Bank (Quick add:
Other).
Account is Consulting Income.
In memo, write: Work completed on 1/10/15.
For 1/20/2015:
Select write a check and a picture of a check will appear.
On check, write: Pay-to-the-order-of:Wansi (Quick add,
Vendor) for $5,000.
In memo, write: For purchase of office supplies.
Account is Supplies.
For 1/31/2015:
Record a deposit of $120,000 from Bill (Quick add: Customer).
Account is Consulting Income.
In memo, write: Work completed on 1/31/2015.
For 1/31/2015:
Select “write a check” and a picture of a check will appear.
On check, write: Pay-to-the-order-of: #1 Employee (Quick add:
Employee) for $25,000.
In memo, write: Payroll expense for month of January, 2015.
Account is Payroll Expense.
Instructions:
· In an Excel worksheet, submit to the assignment area the
standard balance for the end of last month for Sam’s Company.
· Go to the check register icon, then to the top ribbon called
Reports, then select Company and Financial, and then select
Statement of Cash Flow Report. Make sure that the dates on top
are from January 1 to January 31, 2015.

12. · To export data to Excel, select the Excel tab and then select
“create a new worksheet.”
· Save your file as your last name_first name.
Follow these directions to set up QuickBooks™ for the Module
3 Critical Thinking Assignment:
1. Load the QuickBooks™ disc.
2. Enter the information found on the disc sleeve when asked
for the license and product number.
3. Once QuickBooks™ is loaded, reboot your computer.
4. Once the computer is re-booted, click the icon entitled
QuickBooks™, go through the agreement question(s), select
“create a new company,” and then select “express set-up.”
5. Enter the company name in your assignment option choice.
6. Enter the industry: “construction general contractor.”
7. Enter the type of company: “sole proprietorship.”
8. Enter the Tax ID number as 99-1234567.
9. Select “no employees but might have in the future.”
10. Enter your address, phone number, and any email address,
and then enter any website as the website address
11. Wait for QuickBooks™ to create your company.
12. Select the right-hand corner icon called “start working.”
13. Select “Home” from the list in the left-hand column. The
home page will appear as follows:
Source http://topnotchbookkeeping.com/2011/05/quickbooks-
homepage-is-it-yours/
14. Among the icons on the screen (i.e., Vendors, Customers,
Employees, Company, and Bank), select “Chart of Accounts”
under Company and a list of the company accounts will appear.
15. In the top ribbon click “Edit” (second icon over from the
top), and then from the drop-down menu select “add a new
account.”
16. Add two accounts—accounts payables and bank loan
accounts—which are both loan-type accounts; label each

13. accordingly.
17. Change the retainage receivables to account receivables.
18. Delete all expense accounts except payroll expenses, rent
expense, telephone expense, and utilities.
Important items to remember:
· All dates used must be in the month preceding the current
month.
· Do not forget to hit “save and close” after you input and file,
and back up your company’s information often.
· Always ensure that your input dates are last month’s dates. It
is very important to do that, especially if you cannot find an
input.
With the setup complete, you are now ready to begin your
chosen Critical Thinking Assignment in QuickBooks™.
Option #1: Introduction to QuickBooks™: The Bentley Huge
Construction Company Case
Set up your QuickBooks™ access, and then go to the
QuickBooks™ home page. Select “chart of accounts” and enter
each line item in the chart of accounts as follows:
1st of month: Beginning cash is $200,000; beginning equity is
$200,000.
9th of month: Accounts receivable increase $90,000;
corresponding account construction income (Quick add: XYZ,
customer).
11th of month: Construction in progress increase $100,000;
corresponding accounts payable due in 10 days (Quick add:
ABC Company, vendor).
12th of month: Furniture and equipment increase $50,000;
corresponding account cash (ABC Company, vendor).
15th of month: Construction income increase $800,000;
corresponding account accounts receivables (XYZ, customer).
20th of month: Loan from MNO Bank $60,000; corresponding
cash account (Quick add: MNO Bank, other).
30th of month: Make individual cash entries (for each amount to
corresponding expense items) for payroll expense $10,000; rent

14. expense $1,000; telephone expense $300; and utilities expense
$500 (Quick add and use for all: Misc., other).
Instructions:
In an Excel worksheet, submit to the assignment area the
standard balance for the end of last month for the Bentley Huge
Construction Company:
· Go to the top ribbon called “Reports” from Company and
Financial and Balance Sheet Standard.
· To export the chart of accounts to Excel, select the Excel tab
and then select “create a new worksheet.”