1. Given the following information, calculate the equity dividend rate for this investment. First-year NOI: $18,750, Before-tax cash flow: $11,440, Acquisition price: $520,000, Equity Investment: 20%.
A. 2.2% B. 3.6% C. 11.0% D. 18.02%
2. Which of the following statements regarding the efficient market hypothesis (EMH) is incorrect?
A) An efficient market is a perfect market where you cannot make large profits.
B) If the market is efficient in its strong form, it reflects all available, public and private, information.
C) The semi-strong form efficiency means that market prices reflect all publicly available information.
D) A market that only reflects the past price and volume information is a weak-form efficient market.