Indicate if the following are True of False and Why


1. If the efficient market hypothesis is correct, managers will not be
able to increase stock prices by creative accounting that boosts
reported earnings.

2. Fundamental analysis by security analysts and investors helps keep
markets efficient.

3. Investors don’t buy a stock for its unique qualities; they buy it
because it offers the prospect of a fair return for its risk.
Therefore, the demand for a company’s stock should be highly elastic.

4. Zero-coupon stripped U.S. Treasury securities yield more than
coupon U.S. Treasuries of the same maturities.